DES-1241 Exam Questions and Answers

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NEW QUESTION: 1
The essential difference between a 401(k) plan and a 403(b) plan is that:
A. contributions to 403(b) plans are always tax deductible, which is not the case with 401(k) plan contributions.
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C. the 403(b) plan is for employees of specific non-profit organizations whereas the 401(k) plan is for the employees of private corporations.
D. only employers can contribute to 403(b) plans while both employers and employees can contribute to
401(k) plans.
Answer: C
Explanation:
Explanation/Reference:
Explanation: The essential difference between a 401(k) plan and a 403(b) plan is that the 403(b) plan is for employees of specific non-profit organizations whereas the 401(k) plan is for the employees of private corporations. The tax advantages and eligibility requirements of a 403(b) plan are the same as those for a
401(k) plan.


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