When employees contribute to a traditional 401(k) plan, they _____ allowed to deduct the contributions and they ______ taxed on distributions from the plan.
A. are, are not
B. are, are
C. are not, are
D. are not, are not
Answer: B
Tax MCQ
Personal Income Tax Chapter 13
When employees contribute to a traditional 401(k) plan, they _____ allowed to deduct the contributions and they ______ taxed on distributions from the plan.