Question

Select all advantages of investing in a retirement account.

A. Money is deducted from your paycheck before taxes are taken out.
B. You don’t pay taxes on the interest, capital gains, or dividends.
C. There are no penalties for withdrawing money.
D, An employer may match part of your contribution.

Answer 1

Money is deducted from your paycheck before taxes are taken out.

Answer: Option A

Step-by-step explanation:

The major advantage of the tax investing is making a contribution to a retirement account before pre-tax. The money as to be deducted from before taxes are taken out.

The more popular as workers started to take control of their own retirement savings, the investing retirement account offers individuals an opportunity to save for retirement in a tax advantages account. For example, the government allows taxable income to be reduced by the amount of the contribution to a retirement plan.