Which of the Following Is Associated with Roth 401(k)plans

question 32

Multiple Choice

Which of the following is associated with Roth 401(k) plans?

• A)Employees pay taxes on their contribution.
• B)Employees do not pay taxes on their contributions.
• C)Investment gains are taxed.
• D)Employees can deduct their contributions from post taxable income.

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Definitions:

Equity

The value of an owner’s interest in a property or a business, after deducting liabilities and debts.

Dividends

Dividends are a portion of a company's earnings distributed to shareholders, usually in the form of cash payments or additional shares, reflecting the company's profitability and investment return.

Ledger Account

A record that keeps track of all the transactions related to a particular aspect of a business's finances, such as sales or assets.

Land And Buildings

Assets categorization in accounting, where land refers to the cost of land owned by a company and buildings to the cost of structures situated on the land.