Question

Which statement summarizes section 401(k) of the Internal Revenue

Code?


A.)Employers must match the amount of an employee's contribution to a retirement fund up to a certain percentage of the employee's

contribution.

B.)Employees are not taxed on interest earned on compensation that

has been placed in specially designated retirement accounts.

C.)Employees are not taxed on income they choose to receive as

deferred compensation rather than direct compensation,

D.)Employers must establish a program that enables employees to

contribute annually to a retirement account.

Answer 1

A.)Employers must match the amount of an employee's contribution to a retirement fund up to a certain percentage of the employee's contribution.

Step-by-step explanation:

401(k) is defined-contribution retirement account.