Question

Which of the following is true about 401(k) plans? Select all that apply.
(1 point)
Responses

money is set aside for retirement after tax deductions
money is set aside for retirement after tax deductions

money is set aside for retirement before tax deductions
money is set aside for retirement before tax deductions

all employers match employee contributions
all employers match employee contributions

some employers match employee contributions
some employers match employee contributions

money is deposited directly into the employee’s checking account
money is deposited directly into the employee’s checking account

Answer 1

True:
- money is set aside for retirement before tax deductions
- some employers match employee contributions

Notes: Traditional 401(k) contributions are made pre-tax (reducing taxable income). Some plans offer a Roth 401(k) (after-tax contributions). Employer matching is optional and varies by employer — not all employers match.