Question: Sarah made a $ 5 , 0 0 0 pre - tax contribution this year to her 4 0 1 ( k ) plan, which

Sarah made a $

5, 000

pre

-

tax contribution this year to her

401 (k)

plan, which was deducted from her compensation. Her contribution was exempt from both federal and state taxes but was subject to Social Security, Medicare, and federal unemployment taxes. What type of contribution did Sarah make?

.

involuntary contribution

.

employer matching contribution

.

elective deferral

.

qualified compulsory contribution

Sarah made a $5,000 pre-tax contribution this year to her 401(k)

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