Which of the Following Statements Is True of Employees Who

question 41

Multiple Choice

Which of the following statements is true of employees who choose the Roth version of employee payroll-deduction retirement plans?

• A) Their incomes are tax deductible, and the earnings on these investments are tax deferred.
• B) They pay taxes on the income they contribute, but earnings on these contributions are tax exempt.
• C) They must pay taxes on funds distributed from their fund when they make withdrawals.
• D) Their incomes are tax-free, but withdrawals are subject to state taxes.

---

Definitions:

EIS

Stands for Environmental Impact Statement, a document that provides a detailed analysis of the potential environmental effects of a proposed federal action.

Nuclear Power Plant

A facility that generates electricity by using heat from nuclear reactions to produce steam, which drives turbines connected to generators.

Yellowstone National Park

A vast national park known for its wildlife and geothermal features, such as geysers and hot springs, primarily located in the U.S. state of Wyoming.

Comprehensive Environmental Response

The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), is a federal law designed to clean up sites contaminated with hazardous substances and pollutants.