15
QuizMultiple Choice

Unit Test — Unit test

Question 15 • CARE_24_25_TX-Mathematical Models with Applications B

Why would a Roth 401(k) investment plan allow you to invest the most amount of money?

Answer
A
The federal government subsidizes a portion of a Roth 401(k) to help people in lower tax brackets save for retirement.
B
Roth 401(k) plans are reserved for administrators and executives, who have a higher income which would allow them to invest more.
C
A Roth 401(k) plan takes money after tax has been removed from gross income, and has a contribution limit, but withdrawal is tax free.
D
The contribution limit of a Roth 401(k) plan is more than double the limit of the traditional 401(k).
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