Which Is Not an Advantage of a § 401(k) Plan

question 19

Multiple Choice

Which is not an advantage of a § 401(k) plan over a traditional IRA?

• A)Deduction limitation.
• B)Early withdrawal option without penalty.
• C)Loans from the plan.
• D)Record keeping.
• E)All of these are advantages of § 401(k) plan.

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Definitions:

Toll-Free Number

A telephone number that allows callers to reach businesses or individuals without incurring charges, typically starting with prefixes like 800, 888, or 877.

Asset Accounts

Accounts that represent the different types of economic resources owned or controlled by an entity.

Land

Real estate or property, minus buildings and equipment, that is considered a fixed asset.

Buildings

Assets categorized under real estate property that are used for business operations or rented out for revenue generation.