Employee contributions to traditional 401(k) accounts are deductible by the employee, but employee contributions to Roth 401(k) accounts are not.

Name: Employee contributions to traditional 401(k) accounts are deductible by the employee, but employee contributions to Roth 401(k) accounts are not.
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Question

Quizplus · Accepted Answer

Employee contributions to traditional 401(k) accounts are made with pre-tax dollars, reducing taxable income, while Roth 401(k) contributions are made with after-tax dollars and do not reduce taxable income.

Employee Contributions to Traditional 401(k) Accounts Are Deductible by the Employee