Which of the Following Are Potential Benefits of a 401(k)

question 42

Multiple Choice

Which of the following are potential benefits of a 401(k) or 403(b) plan? I. You can make yourself low-interest loans.
II. You can save for retirement.
III. Your contributions to the plan are tax-free.
IV. Your contributions to the plan are tax-deferred.

• A) I, II, III and IV
• B) I, II, and III only
• C) I, II and IV only
• D) I and II only

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Definitions:

Rights Offering

A method by which a company raises additional capital by giving existing shareholders the right to buy new shares at a discount.

Subscription Price

The fee that investors pay when subscribing to a new issue of securities.

Market Price

This refers to the current price at which an asset or service can be bought or sold in the market.