Which of the Following Statements Describes How a Traditional 401(k)

question 29

Multiple Choice

Which of the following statements describes how a traditional 401(k) account is similar to a Roth 401(k) account?

• A)Employees contribute before-tax dollars to both types of accounts.
• B)Distributions from a traditional 401(k) account and a Roth 401(k) account are both subject to minimum distribution penalties.
• C)Both accounts can receive matching contributions from employers.
• D)Employers generally choose how funds in these accounts will be investeD.Both traditional and Roth 401(k)s are subject to minimum distribution penalties.

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Definitions:

Private Nuisance

The use of property in such a way that it foreseeably interferes with a neighbour’s enjoyment of her property

Land Titles Office

A government office that registers legal documents relating to the ownership and boundaries of property, ensuring legal ownership.

Fee Simple

A type of freehold ownership where the owner has the most extensive property rights allowed by law.

Crown

A reference to the state or monarch in the context of legal proceedings or governmental authority.