Which of the Following Is True About a 401(k) Plan

question 110

Multiple Choice

Which of the following is true about a 401(k) plan?

• A) There is no penalty for early withdrawal of these funds.
• B) There is no limit on the dollar amount you can contribute.
• C) Your contributions are automatically vested and are yours, regardless of when you leave the firm.
• D) 401(k) contributions are made after taxes are paid on your salary.

---

Definitions:

Inventory

The total amount of goods and materials held by a company awaiting sale or use in production.

Accounts Receivable

Funds that customers owe a business for products or services already delivered or utilized but not yet paid for.

Raw Materials

Fundamental substances or components used in the initial stages of the manufacturing process to produce goods.

Cash Disbursements

The payment of cash by a business for expenses, purchases, or obligations.