In an employer-sponsored retirement plan,interest,dividends,and capital gains earned from the funds invested in the plan are taxed
A)only after funds are withdrawn from the plan, if at all.
B)with each payment.
C)annually.
D)on a quarterly basis.

Question

Quizplus · Accepted Answer

Interest, dividends, and capital gains earned from funds invested in an employer-sponsored retirement plan are typically tax-deferred, meaning they are not taxed until funds are withdrawn from the plan. This allows individuals to potentially earn more on their investments over time.

In an Employer-Sponsored Retirement Plan,interest,dividends,and Capital Gains Earned from the Funds