Question

Under a cafeteria plan, pretax contribution to a 401 (k) are subject to what federal taxes?

A. FICA, FUTA and FIT
B. FICA and FUTA
C. FICA
D. None

Answer 1

Under a cafeteria plan, pretax contributions to a 401(k) are subject to FICA taxes which include the Social Security tax and the Medicare tax.

Step-by-step explanation:

Under a cafeteria plan, pretax contributions to a 401(k) are subject to FICA taxes. FICA stands for the Federal Insurance Contributions Act and includes two taxes: the Social Security tax and the Medicare tax. These taxes are deducted from an employee's paycheck to fund the Social Security and Medicare programs.