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Rhonda Is Considering Participating in Her Employer's 401(k) Plan Because

Question 38

Multiple Choice

Rhonda is considering participating in her employer's 401(k) plan because they offer a match of $0.50 to each $1.00 Rhonda contributes up to 2%. Rhonda should consider all of the following before deciding to participate EXCEPT:


A) Rhonda must contribute 4% in order to get the full 2% match.
B) Rhonda's contributions to the 401(k) are taken off of her payroll check on a pre-tax basis.
C) If Rhonda is over age 50 she can make "catch up" contributions to her 401(k) .
D) Rhonda is limited to contributing $15,000 each year.
E) The money in the 401(k) is only taxed upon withdrawing the money at retirement.

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