Both traditional 401(k)plans and Roth 401(k)plans are forms of defined contribution plans.

Question

Quizplus · Accepted Answer

Both traditional 401(k) plans and Roth 401(k) plans are types of defined contribution plans, where the employee contributes a specified amount to their retirement account and the employer may also offer a matching contribution. The key difference between the two is when the taxes are paid (before or after contributions are made).

Both Traditional 401(k)plans and Roth 401(k)plans Are Forms of Defined