Which of the Following Statements About 401(k)plans Are True

Which of the following statements about 401(k) plans are true?
I. They are defined benefit plans.
II. They allow employer and employee contributions.
III. Earnings accrue tax-free during the employee's working years.
IV. They allow employee discretion in asset allocation.
V. They always have minimum guaranteed rates of return.

A) I,IV,and V only
B) I,II,and V only
C) II and III only
D) II,III,and IV only
E) All of the options are true.

Correct Answer:

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