Which of the Following Statements Regarding Roth 401(k) Accounts Is

question 54

Multiple Choice

Which of the following statements regarding Roth 401(k) accounts is False?

• A) Employees can make contributions to a Roth 401(k).
• B) Employers can make contributions to Roth accounts on behalf of their employees.
• C) Contributions to Roth 401(k) plans are not deductible.
• D) Qualified distributions from Roth 401(k) plans are not taxable.

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Definitions:

Price Discrimination

A pricing strategy where different prices are charged for the same product or service in different markets or to different consumers.

Elastic Demand

A situation where the quantity demanded of a product is highly responsive to changes in its price.

Inelastic Demand

The condition when the quantity demanded of a product changes very little in response to changes in its price.

Profit-Maximizing

The approach by which an enterprise figures out the optimal pricing and production levels for the highest profit return.