Which of the following is associated with Roth 401(k)plans?

Question

Quizplus · Accepted Answer

Roth 401(k) plans require employees to pay taxes on their contributions, unlike traditional 401(k) plans where taxes are deferred. However, investment gains in Roth 401(k) plans are generally tax-free. Option B is incorrect because it describes a traditional 401(k) plan. Option C is partially correct, as investment gains in Roth 401(k) plans are not taxed, but it is incorrect to say that all investment gains are taxed. Option D is incorrect because contributions to Roth 401(k) plans are made with after-tax dollars and cannot be deducted from post-taxable income.

Which of the Following Is Associated with Roth 401(k)plans