Answer True or False about 401K plans :
1) A 401(K) plan is a good substitute for a life insurance policy.
2) If you contribute to a 401(K) defined contribution plan your wealth grows at the six month U.S. Treasury bill (t-bill) rate.
3) If you have a 401(K) plan you are required to begin making withdrawals from the plan on April first of the year after you turn 70.5 years of age.
4) If you contribute to a 401(K) defined contribution plan your wealth grows at the six month U.S. Treasury bill (t-bill) rate.
5) If you participate in a Roth 401(k), though, the amount you contribute to does not reduce your taxable income or your current income taxes. But when you withdraw funds from your Roth 401-K after you retire, these funds are tax-free, provided you're at least 59½ and your account has been open at least five years .
6) The great thing about 401(K) retirement plans is that plan distributions are never taxed.
7) There are no limits to how much an employer can contribute to an employee’s 401(K) plan each year.
8) When you participate in a traditional 401(k) plan, the taxable salary that your employer reports to the IRS is reduced by the amount that you defer to your account. This means income taxes on that money are postponed until you withdraw from your account, usually after you retire.