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Which of the Following Is True About 401(k) Retirement Plans

Question 44

Multiple Choice

Which of the following is true about 401(k) retirement plans?


A) 401(k) plans always reduce income tax liability.
B) 401(k) plans are usually subject to FICA taxes.
C) 401(k) plans are exempt from all payroll taxes.
D) All 401(k) plans are cafeteria plans.

Correct Answer:

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