401(k) plans are unattractive to employees because these plans require them to pay higher income taxes during working years.

Question

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401(k) plans are actually attractive to many employees because they allow for tax-deferred contributions, meaning taxes are not paid on the money contributed until it is withdrawn during retirement. This can lower the taxable income during working years and potentially result in a lower tax burden overall.

401(k) Plans Are Unattractive to Employees Because These Plans Require