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

question 60

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 withdraws the money.

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Definitions:

Work in Process

Inventory items that are in the process of being produced but are not yet complete, representing a stage between raw materials and finished goods.

Inventory Levels

The quantity of goods and materials a company holds in stock at a particular time.

Cash Disbursements

The actual cash payments made by a business, including expenses, investments, and debt payments.

Budgeted

The process of creating a financial plan for the anticipated revenues and expenses for a future period.