When employees contribute to a Roth 401(k)account, they _____ allowed to deduct the contributions and they _______ taxed on qualified distributions from the plan.
A)are; are not
B)are; are
C)are not; are
D)are not; are not

Question

Quizplus · Accepted Answer

Contributions to a Roth 401(k) are made with after-tax dollars, meaning they are not deductible. Qualified distributions from a Roth 401(k) are tax-free, so they are not taxed.

When Employees Contribute to a Roth 401(k)account, They _____ Allowed