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Which of the following is true about 401(k) plans? Select all that apply.

(1 point)
money is set aside for retirement after tax deductions
money is set aside for retirement before tax deductions
all employers match employee contributions
Osome employers match employee contributions
money is deposited directly into the employee's checking account

User JorelC
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Answer:Regarding 401(k) plans, the following statements are true: - Money is set aside for retirement before tax deductions. This means that the contributions made to a 401(k) plan are typically deducted from the employee's pre-tax income. This can provide potential tax advantages as the contributions are not taxed until they are withdrawn during retirement. - Some employers match employee contributions. Not all employers match employee contributions to their 401(k) plans. However, some employers do offer matching contributions as a benefit to encourage employees to save for retirement. The specific matching policy can vary among employers. - Money is deposited directly into the employee's checking account. This statement is incorrect. Contributions to a 401(k) plan are typically deducted from the employee's paycheck and deposited directly into the 401(k) account, not the employee's checking account. In summary, the correct statements about 401(k) plans are: - Money is set aside for retirement before tax deductions. - Some employers match employee contributions. - Money is not deposited directly into the employee's checking account.

User Yahav Festinger
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