What is the primary purpose of a 401(k) plan?

The primary purpose of a 401(k) plan is to provide a retirement savings vehicle for employees. This plan allows employees to defer a portion of their income into a tax-advantaged account, which can then grow over time through investment gains. The associated tax benefits mean that employees can save more effectively for retirement, as contributions reduce taxable income in the year they are made, and funds can grow tax-deferred until withdrawn, typically at retirement age.

In contrast, while there may be tax implications for employers regarding contributions made on behalf of employees, the plan itself is fundamentally designed to serve the savings needs of employees for their retirement. The other options relate to different aspects of employee benefits or corporate strategies but do not capture the central purpose of a 401(k) plan, which is to support employees in their retirement savings goals. These other choices highlight different facets of corporate benefits or financial management but do not pertain to the primary objective of 401(k) plans.