A primary benefit of 401(k)plans is that payments made by employees into the plan are pretax so the employee pays no tax on those dollars until after he or she retires or removes the money from the 401 (k)plan.

Question

Quizplus · Accepted Answer

401(k) contributions are typically made with pre-tax dollars, meaning taxes are deferred until withdrawal, usually during retirement.

A Primary Benefit of 401(k)plans Is That Payments Made by Employees