Roberta has just opened a 401(k) retirement plan. The money she invests in this plan will reduce Roberta's present taxable income.

Question

Quizplus · Accepted Answer

When Roberta invests money in a 401(k) retirement plan, the amount she contributes is deducted from her taxable income for the current year. This means that she will pay fewer taxes on her income, as her taxable income will be reduced. Therefore, the statement is true.

Roberta Has Just Opened a 401(k) Retirement Plan