A 401(k) plan is a tax-deferred retirement plan in which both the employee's contributions to the plan and the earnings on those contributions are tax deductible, with all the taxes being deferred until retirement withdrawals are made.

Question

Quizplus · Accepted Answer

A 401(k) plan is indeed a tax-deferred retirement plan where both the employee's contributions and earnings are tax deductible, and taxes are deferred until withdrawals are made during retirement.

A 401(k) Plan Is a Tax-Deferred Retirement Plan in Which