Under a 401(k) plan, you can elect to have your employer make nontaxable contributions to the plan for your benefit and reduce your salary by an offsetting amount.

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Quizplus · Accepted Answer

This is true. With a 401(k) plan, you can choose to have a portion of your salary contributed to the plan on a pre-tax basis, which reduces your taxable income. Additionally, many employers offer matching contributions or profit-sharing contributions to the plan, which are also tax-deferred.

Under a 401(k) Plan, You Can Elect to Have Your