Which of the following statements are true regarding taxation of employee deferrals into a 401(k), employer matching dollars into a 401(k) and employer discretionary contributions to a profit sharing plan?
(1) Employee elective deferrals into a traditional 401(k) plan (not a Roth 401(k) plan) are subject to federal income tax withholding and are reported as annual income in year earned.
(2) Employee elective deferrals into a traditional 401(k) plan (not a Roth 401(k) plan) are still subject to FICA payroll tax (both by the employee and employer)
(3) The employer’s matching contribution to an employee’s 401(k) represent an immediate tax deduction (subject to 25% of total compensation limitation)
(4) The employer’s matching contributions to an employee’s 401(k) plan are not subject to FICA payroll taxes.
2 and 4
1 and 3
2, 3 and 4
1, 2 and 3