Under a 401(k) plan, your employer makes nontaxable contributions to the plan for your benefit and reduces your salary by the same amounts.Group of answer choicesTrueFalse

Many companies offer a 401(k) plan for employees’ retirement. Participants authorize a certain percentage of their before-tax salary to be deducted from their paycheck and put into a 401(k). By putting a percentage of your salary into a tax-deferred 401(k), you reduce the amount of pay subject to federal and state income tax. In addition, your employer may match a portion of every dollar you invest in the 401(k), up to acertain percentage or dollar amount.Group of answer choicesTrueFalse

Fill in the blank: Employees can make _____ to qualified retirement plans, such as 401(k) plans, 403(b) plans, and different IRA plans. 1 pointdirect deposits from family memberscontributions in the form of unused vacation daysdonations salary deferrals

What is a 401(k)?A.A retirement plan sponsored by a company to which employees can contribute part of their wagesB.A certificate issued by a bank to a person who has deposited money for a specific amount of timeC.A retirement fund that is designed for self-employed and other individualsD.A federal program that provides retirement income for the elderly and people with disabilitiesSUBMITarrow_backPREVIOUS

Question 14Under defined contribution plan:Answer :The employer’s contribution is unknown.   The benefits payable to the retiring employees is unknown.   The amount of benefits to be received by the retiring employees depends on the amounts originally contributed plus income from investments accumulated in the fund.    The benefits of gains or risks of losses invested under the fund are borne by the employees.

What is the purpose of a 401(k) plan in retirement planning?Question 4AnswerA.To invest in high-risk assetsB.To provide life insurance coverageC.To offer short-term investment optionsD.To facilitate retirement savings through employer-sponsored plans