Question

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

money is set aside for retirement after tax deductions

money is set aside for retirement before tax deductions

all employers match employee contributions

some employers match employee contributions

money is deposited directly into the employee’s checking account

Answer 1

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

(Traditional 401(k) contributions are pre-tax; employer matching is optional and varies by employer.)