What is a common payroll deduction for retirement savings plans?

A common payroll deduction for retirement savings plans is 401(k) contributions. These deductions are taken directly from employees' paychecks to fund their retirement accounts, which allows employees to save for retirement on a tax-deferred basis. This means that the contributions are deducted from their gross income before federal income taxes are applied, potentially lowering their taxable income for the year.

401(k) plans are employer-sponsored retirement plans that provide a structured way for employees to set aside funds for their retirement future, often with the added benefit of employer matching contributions. This not only encourages savings but also promotes financial security in retirement, making it a critical component of many employees' financial planning.

The other options presented, while they are indeed payroll deductions, do not specifically pertain to retirement savings plans. Health insurance premiums are deducted to cover medical coverage costs; federal income tax is withheld for tax obligations; and Social Security contributions fund the federal social insurance program. Thus, among the options listed, 401(k) contributions is the most relevant to retirement savings.