How is a 401(k) plan taxed?
A. A 401(k) plan is not taxed at all.
B. 401(k) contributions are taxed when workers make their contributions, and grow tax-free until retirement.
C. Contributions to a 401(k) plan are taxed at the time the contribution is made, and again when the money is withdrawn from the account after retirement.
D. A 401(k) plan is taxed when workers withdraw money from the account to pay for retirement expenses.
Answer: D
You might also like to view...
The largest major change in the U.S. labor force participation rate during the last few decades has been
A) the increase in the number of illegal immigrants in the United States. B) the decrease in the number of working women. C) the number of prisoners dropping out of the labor force. D) the increase in the number of working women.
In the United States, private health insurance companies
A) are all for-profit firms. B) can be either for-profit or not-for-profit firms. C) are all not-for-profit firms. D) are all government-run firms.
Use the law of diminishing marginal utility to explain why a pizza parlor might price pizzas in the following way: "Buy one pizza for $12, get the second pizza for $6." Why not simply charge $9 per pizza instead?
In a sense, the long-run average cost curve is holding
A) short-run average variable cost curves. B) short-run marginal cost curves. C) short-run average total cost curves. D) short-run total cost curves.