Question: When an employee has a Roth 4 0 1 ( k ) with an employer match, how are the employer's matching funds applied? Multiple choice
When an employee has a Roth k with an employer match, how are the employer's matching funds applied?
Multiple choice question.
The matching funds must be put in a traditional k for the employee because employers can NOT make contributions to a Roth k
The employee can elect to pay income tax on the amount of the employer's contribution, so that the matching funds can be applied in the Roth k
The employer is able to invest the matching funds directly into the employees' chosen investments for their Roth ks
The employee will lose the matching funds if a Roth k is chosen because the employer is NOT allowed to invest in that type of account.
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