A Primary Benefit of 401(k)plans Is That Payments Made by Employees

question 34

True/False

A primary benefit of 401(k)plans is that payments made by employees into the plan are pretax so the employee pays no tax on those dollars until after he or she retires or removes the money from the 401 (k)plan.

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Definitions:

Air Convergence

The meeting and combining of airflow from different directions, often leading to cloud formation and precipitation.

Air Divergence

The movement of air away from a particular region, often associated with descending air and fair weather.

Trough Of Low Pressure

A long, extended region in the atmosphere where the atmospheric pressure is lower than the surrounding area.

Buoyant Forces

The upward force exerted by a fluid that opposes the weight of an object immersed in the fluid, crucial in explaining why objects float or sink.