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

The primary function of a 401(k) plan is to allow employees to save for retirement on a pre-tax basis. This means that contributions made to the plan are deducted from an employee's taxable income, reducing their current tax burden while helping them build a savings fund for retirement. Employers often match contributions up to a certain percentage, which can further enhance the retirement savings potential for employees.

In contrast, health insurance options, while important benefits, do not pertain to the primary purpose of a 401(k) plan. Similarly, student loan repayment assistance is a separate benefit, reflecting an employer's support for educational debt and financial wellness, rather than focusing on retirement savings. Lastly, team-building activities are related to employee engagement and organizational culture rather than retirement planning. Thus, option C distinctly identifies the fundamental role of a 401(k) plan in assisting employees to prepare for their financial future in retirement.