A primary benefit of 401(k)plans is that payments made by employees into the plan are pretax, so the employee pays no tax on those dollars until after he or she retires or withdraws the money.

Question

Quizplus · Accepted Answer

Payroll deductions for 401(k)plans are pretax, so the employee pays no tax on those dollars until after he or she retires (or removes the money from the 401(k)plan).

A Primary Benefit of 401(k)plans Is That Payments Made by Employees