Which of the following is a common retirement savings option?

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A 401(k) plan is indeed a common retirement savings option primarily offered by employers to help employees save for retirement. This plan allows employees to contribute a portion of their wages on a pre-tax basis, meaning that contributions are deducted from their taxable income. In many cases, employers will also match a portion of employee contributions, effectively providing "free money" for retirement savings.

The beauty of a 401(k) lies in its tax advantages and the potential for growth through investment in various assets such as stocks, bonds, and mutual funds. This tax-deferred growth can significantly benefit savers by allowing them to accumulate a larger retirement fund than they might otherwise achieve through traditional savings methods. Additionally, individuals can choose how to invest their funds within the plan, tailoring their risk exposure to align with their retirement goals.

In contrast, other options listed, such as a traditional savings account, Roth IRA, and fixed deposits, have different purposes and are not primarily structured as employer-sponsored retirement savings vehicles. While each of those options has its own value, especially in terms of liquidity or tax treatment, they lack the specific features and benefits that make a 401(k) particularly advantageous for retirement savings.

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