Question

Contributions to TSA plans can...

A. Be deducted from your income for tax purposes.
B. Only be made in cash.
C. Never be withdrawn until retirement.
D. Only be made by your employer.

Answer 1

Contributions to TSA plans can be deducted from your income for tax purposes.

Step-by-step explanation:

Contributions to TSA plans can be deducted from your income for tax purposes. This means that the amount of money you contribute to your TSA plan can be subtracted from your taxable income, reducing the amount of taxes you owe. For example, if you earn $50,000 and contribute $5,000 to your TSA plan, you would only pay taxes on $45,000.