AI and employer 401k match: free money you keep leaving on the table

End-of-lesson check

15 questions · take it digitally for instant feedback at tendril.neural-forge.io/learn/quiz/end-builders-finance-AI-and-employer-401k-match

1. What does an employer 401k match represent?

   1. A loan you must repay when you leave the job
   2. A tax penalty for early withdrawal
   3. Free money the employer contributes to your retirement savings
   4. A requirement that forces you to contribute

2. Your employer matches 100% of your contributions up to 5% of your salary. If you earn $60,000 per year and want the full match, how much must you contribute each year?

   1. $3,000
   2. $60,000
   3. $5,000
   4. $300

3. What is vesting?

   1. The percentage of your salary you contribute to retirement
   2. The process of opening a retirement account
   3. The interest rate your investments earn
   4. A waiting period before employer-contributed funds fully belong to you

4. How can AI help with your 401k?

   1. By filing your taxes for free
   2. By calculating the exact contribution needed to maximize your employer match
   3. By automatically investing your money without permission
   4. By guaranteeing a certain return on investments

5. If you skip contributing to your 401k and miss the employer match, what happens?

   1. Nothing happens because matching is optional
   2. Your employer adds the match anyway
   3. You pay higher taxes immediately
   4. You lose the matched funds permanently

6. Why might someone want to ask AI to explain a vesting schedule in plain English?

   1. To calculate their exact tax bill
   2. Because legal documents about vesting are often confusing and full of jargon
   3. To determine which stocks to buy
   4. To find loopholes to take money early

7. Your employer matches 50% of your contributions up to 4% of your salary. You earn $40,000 and contribute $1,600 per year. How much total goes into your 401k from both you and your employer?

   1. $2,400
   2. $3,200
   3. $800
   4. $1,600

8. What is one reason to ask AI to model what happens if you skip the 401k match over 10 years?

   1. To find out your exact Social Security benefits
   2. To compare different bank interest rates
   3. To determine your tax refund amount
   4. To see how much free money you would lose over time

9. What does it mean to 'leave money on the table' regarding 401k matching?

   1. You fail to contribute enough to get the full employer match
   2. You accidentally withdraw your savings early
   3. You invest in the wrong stocks
   4. You keep your money in a regular savings account instead

10. Why should you ask AI to remind you to revisit your 401k contributions after a raise?

    1. Your employer match amount may change based on your new salary percentage
    2. Your contributions automatically increase with raises
    3. AI needs something to do
    4. Raises require you to pay extra taxes on 401k contributions

11. If your employer has a 3-year vesting schedule, what does that mean?

    1. You must wait 3 years before you can contribute to your 401k
    2. Your investments will double every 3 years
    3. You can only contribute to your 401k for 3 years
    4. After 3 years of working there, employer-contributed funds fully belong to you

12. What type of document would you paste into AI to calculate your required 401k contribution?

    1. A social media post about retirement
    2. Your employer's benefits summary or 401k plan document
    3. A recipe for chocolate chip cookies
    4. Your last three bank statements

13. If your employer matches 100% up to 6% of salary and you contribute 3% of your $50,000 salary, how much employer match do you receive?

    1. $6,000
    2. $0
    3. $1,500
    4. $3,000

14. Why might a new employee want to check if their employer has a vesting schedule?

    1. To determine how much their paycheck will be taxed
    2. To calculate their Social Security benefits
    3. To know if they will receive their full employer match if they leave early
    4. To decide which insurance plan to choose

15. Which of these is the best use of AI when planning for 401k benefits?

    1. AI predicting the stock market performance
    2. AI reading your benefits document and calculating how much to contribute
    3. AI automatically withdrawing money from your account
    4. AI telling you which specific stocks to buy