Question

Consumption and Benefits Unit Test
2 of 152 of 15 Items
Question
What is a true statement about a 401k deduction?(1 point)
Responses

It is a contribution to the workers retirement account
It is a contribution to the workers retirement account

It is subtracted from the gross income resulting in lower taxes
It is subtracted from the gross income resulting in lower taxes

It is a mandatory deduction
It is a mandatory deduction

It is an involuntary deduction
It is an involuntary deduction

A and B
A and B

Answers

GPT-4o mini
The correct response is **A and B**.

- "It is a contribution to the workers retirement account" (True)
- "It is subtracted from the gross income resulting in lower taxes" (True)

A 401k deduction is typically voluntary (not mandatory or involuntary) and is considered a contribution to a retirement account, which can lower taxable income.