Which one of the following statements about 401k plans is not correct?

A) The employer will typically match some portion of an employee's contributions to a 401k.
B) A 401k plan is a defined contribution plan.
C) Allowable contributions to 401k plans are limited.
D) Withdrawals from 401k plans are not taxed upon retirement.

Defined Contribution Plan

A retirement plan in which the employee, employer, or both make contributions on a regular basis, but the benefit received upon retirement depends on the plan's investment performance.

401k Plans

A retirement savings plan sponsored by an employer that allows employees to save and invest a portion of their paycheck before taxes are taken out.

Employer Match

A contribution made by an employer to an employee's retirement plan, equal to a certain percentage of the employee's own contributions.