All the Following Statements Concerning a Roth 401(k)plan Are True

question 17

Multiple Choice

All the following statements concerning a Roth 401(k) plan are true EXCEPT

• A)After-tax dollars are used to fund the plan.
• B)Investment earnings accumulate on a tax-free basis.
• C)Employees at all income levels may contribute to the plan,but annual contributions are limited.
• D)Qualified distributions at retirement are fully taxable.

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Definitions:

Equal in Power

A state or condition in which multiple parties or individuals possess similar levels of authority, influence, or strength.

Aggressive

Showing readiness to attack or confront, characterized by or resulting from aggression.

Coercive

Relating to or using force or threats to persuade someone to do something or to achieve compliance.

Uncommunicative

Lacking the willingness or ability to talk or share information.