401(k), 403(b), and governmental 457 plans may offer employees the option to con

Question

401(k), 403(b), and governmental 457 plans may offer employees the option to contribute to a traditional tax-deferred and/or a designated Roth account. Which statement below about a contribution to a designated Roth account is FALSE?

A)Within these plans, a contribution to a designated Roth account can be re-designated at any time as a contribution to a traditional tax-deferred account.

B)A contribution to a designated Roth account does NOT reduce wage income.

C)The annual contribution limit applies to the combined contributions to traditional tax-deferred and designated Roth accounts within these plans.

D)Employers may match contributions to a designated Roth account, but must contribute the match to a traditional tax-deferred account

Explanation / Answer

Answer:

Answer is A.

Within these plans,a contribution to a designated Roth account can be re-designated at any time as a contribution to a traditional tax - deferred account.

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