Question

One of the big advantages to a 401(k) plan is that ______. a. 401(k) plans are rare enough that they are very valuable b. the plan automatically increases in value by 500% c. you don't have to pay into a 401(k) with your own money d. the amount you contribute reduces your taxable income

Answer 1

the answer is D

Step-by-step explanation:

on edge 2020

Answer 2

d. the amount you contribute reduces your taxable income

Step-by-step explanation:

The 401(k) plan is the plan that has the tax advantage in the retirement. It could be opened via the employees, Here the money could be grow at tax-free. In this, if the amount is contributed so it could lowered the tax burden and unless you withdrawn you dont have to pay the tax in the retirement

Therefore as per the given situation, the option d is correct