ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Tax-deferred means ____
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You do not have to pay income tax on the money until you begin to withdraw it at retirement
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You pay income tax on the retirement contributions when you deposit them
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -What is a Tax-Deferred Savings Plan? A tax deferred savings plan is an investment option that allow investors to postpone that payment of taxes on the money invested until it is withdrawn. Mostly, people use this option for post-retirement income. It is a long-term investment tool and comes with multiple benefits.
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