Each of the following statements is correct about a roth


Each of the following statements is correct about a Roth 401(k), except for one. Which of the following statements is incorrect?

An employer’s matching contributions will not go to the Roth 401(k) account; rather, the contributions will fund the traditional 401(k) account.

Similar to the Roth IRA eligibility phase-out, employees may be prohibited from making a deferral to their company's Roth 401(k) if their earnings are too high.

Employee deferrals designated for a Roth 401(k) will grow on a tax-free basis; deferrals designated to a traditional 401(k) will grow on a tax-deferred basis.

An employer who sponsors a Roth 401(k) plan is also required to offer a traditional (pre-tax) 401(k) plan

An employee who is age 50 or older is eligible for catch-up contributions to their Roth 401(k)

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Financial Management: Each of the following statements is correct about a roth
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