Which of the following statements is false regarding an employee's contribution into a 401(k) tax deferred retirement account? a.The employee's contributions are not subject to FICA tax. b.Upon retirement, payments are then subject to federal income tax. c.Upon retirement, the employee will receive their contributions back in the form of regular payments. d.The employee may be in a lower tax bracket when the retirement income is taxed. e.None of these statements are correct
Which of the following statements is false regarding an employee's contribution into a 401(k) tax deferred retirement account? a.The employee's contributions are not subject to FICA tax. b.Upon retirement, payments are then subject to federal income tax. c.Upon retirement, the employee will receive their contributions back in the form of regular payments. d.The employee may be in a lower tax bracket when the retirement income is taxed. e.None of these statements are correct
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Which of the following statements is false regarding an employee's contribution into a 401(k) tax deferred retirement account?
a.The employee's contributions are not subject to FICA tax.
b.Upon retirement, payments are then subject to federal income tax.
c.Upon retirement, the employee will receive their contributions back in the form of regular payments.
d.The employee may be in a lower tax bracket when the retirement income is taxed.
e.None of these statements are correct.
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