Which of the Following Statements Describes How a Traditional 401(k)account

question 2

Multiple Choice

Which of the following statements describes how a traditional 401(k) account is similar to a Roth 401(k) account?

• A)Employees contribute before-tax dollars to both types of accounts.
• B)Distributions from a traditional 401(k)account and a Roth 401(k)account are both subject to minimum distribution penalties.
• C)Both accounts can receive matching contributions from employers.
• D)Employers generally choose how funds in these accounts will be invested.

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