SIE Exam Question 360: Answer and Explanation

Question: 360

In a 401(k) with a Roth account option, how are employer matching contributions allocated?

• A. To the Roth account only
• B. To the regular 401(k) only
• C. To either the regular 401(k) or Roth account, at the employer's option
• D. To either the regular 401(k) or Roth account, at the employee's option

Correct Answer: B

Explanation:

B - Only employee deferrals, not employer contributions, may go into the Roth account. All employer contributions go into the regular 401(k).