All 401(k)contributions are on a pretax basis and the earnings are tax-deferred.

Name: All 401(k)contributions are on a pretax basis and the earnings are tax-deferred.
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Quizplus · Accepted Answer

This is true. Contributions made to a traditional 401(k) plan are made on a pretax basis, reducing the amount of taxable income for the employee. Additionally, any earnings accumulated in the account are tax-deferred until the funds are withdrawn.

All 401(k)contributions Are on a Pretax Basis and the Earnings