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

Question 57

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.

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