Which of the following statements is false regarding an employee's contribution into a 401(k) tax deferred retirement account?
A) Upon retirement, the employee will receive their contributions back in the form of regular payments.
B) The employee may be in a lower tax bracket when the retirement income is taxed.
C) Upon retirement, payments are then subject to federal income tax.
D) The employee's contributions are not subject to FICA tax.
E) None of the above statements is correct.
Correct Answer:
Verified
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