How is a 401(k) plan taxed?
A) A 401(k) plan is taxed when workers withdraw money from the account to pay for retirement expenses.
B) 401(k) contributions are taxed when workers make their contributions, and grow tax-free until retirement.
C) Contributions to a 401(k) plan are taxed at the time the contribution is made, and again when the money is withdrawn from the account after retirement.
D) A 401(k) plan is not taxed at all.
Correct Answer:
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