Which statement is NOT true?
A) Contributions to 401(k)programs are tax deferred.
B) Withdrawals from 401(k)programs made after the minimum age for withdrawal are tax exempt.
C) Withdrawals from 401(k)programs made before the minimum age for withdrawal are (with few exceptions)subject to a 10% early withdrawal penalty.
D) 401(k)programs are offered by most private and public companies.

Question

Quizplus · Accepted Answer

Withdrawals from 401(k) programs made after the minimum age for withdrawal (usually 59 1/2 years old) are not tax exempt, but they are taxed at the individual's current income tax rate.

Which Statement Is NOT True