Which of the following is a tax benefit associated with 401(k)plans? (401(k)Plans)

Question

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The tax benefit associated with 401(k) plans is that employees do not pay taxes on their contributions. However, investment gains are taxed when they are withdrawn from the account. Option A is incorrect because employees do pay taxes on the money when it is withdrawn from the account. Option C is partially correct but incomplete because it only mentions investment gains and does not address employee contributions. Option D is incorrect because employees can deduct their contributions from taxable income, subject to certain limits.

Which of the Following Is a Tax Benefit Associated with 401(k)plans