An employer matches 80% of contributions to a 401-K up to 6%. If an employee saves 10% of their salary, what percentage will the employer match?

To determine the employer match in this scenario, we first need to understand the components involved. The employer matches 80% of an employee's contributions to a 401(k) plan, but this match is capped at contributions up to 6% of the employee's salary.

In this case, the employee is contributing 10% of their salary. However, since the employer only matches contributions up to 6%, we will focus on that percentage.

Calculating the employer's match involves the following steps:

1. Find the maximum contribution eligible for the match, which is 6% of the salary.
2. Since the employer matches 80% of the contributions they receive, we calculate 80% of the 6% maximum contribution.

Calculating 80% of 6% yields: [ 0.80 \times 6% = 4.8% ]

Therefore, the employer will contribute 4.8% of the employee's salary as a match to their 401(k) plan. This outcome is the reason why the answer is 4.8%, as it represents the actual employer match based on the defined terms of contribution limits and matching percentages.

The other options reflect either higher matches