When a retirement plan is tax-qualified,
A) earnings on plan assets are subject to a lower federal income tax rate.
B) federal income taxes on contributions made to the plan and earnings on plan assets are not assessed until withdrawal at retirement.
C) contributions made to the plan and earnings on plan assets are exempt from federal income taxation.
D) earnings on plan assets are subject to additional federal income taxes, including a higher tax rate.
Correct Answer:
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