The Following Is Not True of Section 401(k)plans

question 2

Multiple Choice

The following is not true of Section 401(k) plans:

• A)Section 401(k)plans allow annual employee contributions of up to $16,500 ($22,000 if age 50 or older).
• B)The contributions to the Section 401(k)plan and earnings of the plan are taxable only when withdrawn.
• C)Section 401(k)plans are for employers who have no more than 100 employees.
• D)Some employers match employee contributions up to a certain percentage in order to encourage participation.

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