When comparing the 401k and the Traditional IRA, what benefit is sometimes offered by the employer to make the 401k a better choice?Multiple ChoiceSome employers will match the employee’s contributions in the 401k.There are no valid reasons to invest in a 401k compared to a Traditional IRA.The employer will often make your investment decisions for the employee, resulting in better growth potential.Money inside a 401k may be removed anytime without penalty.The earnings withdrawn from a 401k are not taxed.

What is the main benefit of investing in a 401k, IRA, or other retirement account?Multiple ChoiceThe employee receives additional tax deductions yearly.The earnings are tax free once withdrawn.These accounts always end up being worth more than the initial contributions.The employer matches the employee’s contributions.The earnings grow without being taxed yearly.

How are 401(k)s different from Roth or traditional IRAs?A.Roth and traditional IRAs receive deposits after taxes have been paid on income.B.401(k)s are set up through an employer, while Roth and traditional IRAs are set up by individuals.C.Roth and traditional IRAs are set up through an employer, while 401(k)s are set up by individuals.D.401(k)s receive deposits after taxes have been paid on income.SUBMITarrow_backPREVIOUS

How are IRAs different from 401(k) plans?A.IRAs are set up by employers.B.IRAs are defined-benefit plans.C.IRAs are defined-contribution plans.D.IRAs are set up by individuals.SUBMITarrow_backPREVIOUS

Which of the following is TRUE regarding 401k investments?Interest on investments is not tax deferred.Interest on investments is tax deferred.This retirement plan is rarely used.Employer can contribute part of employee's pay without consent.

Which statement describes an advantage of tax-deferred retirement savings?A.The tax burden on your savings is partly paid at the time you invest.B.You don't pay tax on your investment until you withdraw it.C.You earn extra interest on your savings.D.You pay all the tax when you invest so you don't owe tax when you withdraw it.