Putting money into tax-sheltered retirement plans is the single smartest idea in personal financial planning.

Question

Quizplus · Accepted Answer

Tax-sheltered retirement plans, such as 401(k)s and IRAs, allow individuals to save money for retirement on a pre-tax basis, which can significantly lower their current tax liability. Additionally, the money in these plans grows tax-free until it is withdrawn in retirement. This can result in significant savings over the long-term and is generally considered one of the most effective ways to save for retirement.

Putting Money into Tax-Sheltered Retirement Plans Is the Single Smartest