Darren is eligible to contribute to a traditional 401(k)in 2017.He forgot to contribute before year-end.If he contributes before April 15,2018,he is allowed to treat the contribution as though he made it during 2017.

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Quizplus · Accepted Answer

This statement is true. The IRS allows individuals to make contributions to a traditional 401(k) account up until the tax filing deadline (April 15th of the following year) and still treat it as if it was made during the previous tax year. This is known as the "grace period". Therefore, Darren can still make a contribution for the 2017 tax year before April 15, 2018, and receive the tax benefits for the 2017 tax year.

Darren Is Eligible to Contribute to a Traditional 401(k)in 2017