QuestionMay 31, 2025

Question 5(Multiple Choice Worth 5 points) (04.01 MC) Which of the following is an advantage of a 401(k)? Contributions are tax -deductible Employers can contribute Contributions are limited Disbursements are tax-free

Question 5(Multiple Choice Worth 5 points) (04.01 MC) Which of the following is an advantage of a 401(k)? Contributions are tax -deductible Employers can contribute Contributions are limited Disbursements are tax-free
Question 5(Multiple Choice Worth 5 points)
(04.01 MC)
Which of the following is an advantage of a 401(k)?
Contributions are tax -deductible
Employers can contribute
Contributions are limited
Disbursements are tax-free

Solution
4.4(242 votes)

Answer

Contributions are tax-deductible Explanation 1. Identify the advantages of a 401(k) A 401(k) plan allows for tax-deductible contributions, meaning contributions reduce taxable income. Employers can also contribute to an employee's 401(k), which is another advantage.

Explanation

1. Identify the advantages of a 401(k)<br /> A 401(k) plan allows for tax-deductible contributions, meaning contributions reduce taxable income. Employers can also contribute to an employee's 401(k), which is another advantage.
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