Employees find 401(k) plans unattractive because these plans require employees to pay higher income taxes during working years.

Question

Quizplus · Accepted Answer

401(k) plans are designed to reduce employees' income taxes during working years by allowing pretax contributions to the plan, meaning the contributions are made before income taxes are deducted. Employees only pay taxes on the funds when they withdraw them from the account, typically during retirement.

Employees Find 401(k) Plans Unattractive Because These Plans Require Employees