A retirement plan that offers a tax shelter will defer ________ taxes on contributions and investment earnings.

Question

Quizplus · Accepted Answer

Retirement plans such as IRAs and 401(k)s offer a tax shelter that allows contributions to be deducted from taxable income, and investment earnings to grow tax-free until withdrawal. This defers income taxes on the contributions and earnings until the funds are withdrawn in retirement.

A Retirement Plan That Offers a Tax Shelter Will Defer