Which is a significant feature of employer-sponsored retirement plans?

Employer-sponsored retirement plans, such as 401(k) plans, are designed to provide systematic saving and investment options for employees. One of the most significant features of these plans is that they are subject to tax benefits under certain conditions. Contributions to these plans are often made with pre-tax dollars, meaning that employees can reduce their taxable income in the year they contribute. Additionally, the growth of funds in these accounts is tax-deferred until the employee withdraws the money, which typically occurs during retirement when they may be in a lower tax bracket.

This tax-advantaged status offers powerful incentives for participation and saving for retirement, making employer-sponsored plans an essential component of many employees' financial planning. The other options highlight features that are generally not characteristic of employer-sponsored retirement plans; for example, immediate withdrawals often come with penalties, high fees are not universally applicable, and these plans are not limited exclusively to top executives. Overall, the tax benefits play a critical role in encouraging employees to contribute and save for their retirement through these plans.