Which of the following are potential benefits of a 401(k) or 403(b) plan? I. You can make yourself low-interest loans.
II. You can save for retirement.
III. Your contributions to the plan are tax-free.
IV. Your contributions to the plan are tax-deferred.

Question

Quizplus · Accepted Answer

Making low-interest loans to yourself from your 401(k) or 403(b) plan is not a potential benefit, as it is generally not recommended and can have negative consequences. However, saving for retirement, tax-free and tax-deferred contributions are all potential benefits of these plans.

Which of the Following Are Potential Benefits of a 401(k)