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

question 146

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 the above are advantages of § 401(k) plan.

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Definitions:

Arbitrator's Decision

The final ruling or determination made by an arbitrator, who is a neutral third party chosen to resolve a dispute.

Appellate Court

A court having jurisdiction to review decisions of lower courts or administrative agencies, often focusing on matters of law rather than fact.

Alternative Dispute Resolution

A method for settling disputes outside of the courtroom, such as through arbitration or mediation.

Mediation

A method of settling disputes outside of court by using the services of a neutral third party, called a mediator. The mediator acts as a communicating agent between the parties and suggests ways in which the parties can resolve their dispute.