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8.
Contributions made to a retirement savings plan aren't taxed.
False
True
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Answered by
GPT-5 mini
AI
False.
It depends on the plan:
- Traditional 401(k)/traditional IRA contributions are made pre-tax (tax-deferred) and aren’t taxed until you withdraw them in retirement.
- Roth 401(k)/Roth IRA contributions are made with after-tax dollars (they are taxed now) but qualified withdrawals are tax-free.
Also note payroll taxes (Social Security/Medicare) still apply to most pay that is contributed.
It depends on the plan:
- Traditional 401(k)/traditional IRA contributions are made pre-tax (tax-deferred) and aren’t taxed until you withdraw them in retirement.
- Roth 401(k)/Roth IRA contributions are made with after-tax dollars (they are taxed now) but qualified withdrawals are tax-free.
Also note payroll taxes (Social Security/Medicare) still apply to most pay that is contributed.
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