multiple choice question\nwhat are pre - tax deductions and contributions?\na. contributions taken out of…

Brief Explanations:

Pre - tax deductions and contributions are amounts that are subtracted from an employee's gross income before the calculation of income tax. This reduces the taxable income, thereby potentially lowering the amount of income tax owed. For example, contributions to a traditional 401(k) are pre - tax. If an employee earns $50,000 and contributes $5,000 to a traditional 401(k), the taxable income is $45,000.

Answer:

B. Contributions taken out of your paycheck BEFORE taxes are calculated on your income