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

Question

Quizplus · Accepted Answer

Contributions to traditional 401(k) accounts are made with pre-tax dollars, reducing taxable income for the year those contributions are made. However, contributions to Roth 401(k) accounts are made with after-tax dollars, meaning they do not reduce taxable income in the year of contribution.

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