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8. Reese earns $150,000. She defers $10,000 into her 401(k) traditional account and $5,000 into her 401(k) Roth account. Which of the following statements is/are

8. Reese earns $150,000. She defers $10,000 into her 401(k) traditional account and $5,000 into her 401(k) Roth account. Which of the following statements is/are true? 1. Only $140,000 of earnings is subject to FICA. 2. Her W-2 wages subject to Federal income tax equals $135,000. a. 1 only. b. 2 only. c. Both 1 and 2. d. Neither 1 nor 2

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