Question

what type of retirement account is a roth 401(k)?

an employer - sponsored retirement plan funded with after - tax money that you can withdraw tax - free once you reach retirement age

an individual retirement account allowing a person to set aside income (that you have paid taxes on first) up to a specified amount each year and invested.

qualified employer - established plan to which eligible employees may make salary deferral (salary reduction) contributions on a post - tax and/or pretax basis.

a traditional individual account which allows individuals to direct pretax income towards investments that can grow tax - deferred; you are taxed on the money when you pull the money out when youre older.

Explanation:

To determine the correct answer, we analyze each option:

• Option 1: A Roth 401(k) is employer - sponsored, funded with after - tax money, and withdrawals in retirement are tax - free. This matches the characteristics of a Roth 401(k).
• Option 2: This describes a Roth IRA, not a Roth 401(k). Roth 401(k) is employer - sponsored, while Roth IRA is an individual account.
• Option 3: A Roth 401(k) contributions are only post - tax (after - tax), not pre - tax. So this option is incorrect.
• Option 4: This describes a traditional IRA, where contributions are pre - tax and withdrawals are taxed. It has nothing to do with Roth 401(k).

Answer:

A. An employer - sponsored retirement plan funded with after - tax money that you can withdraw tax - free once you reach retirement age