Contributions to a traditional retirement plan are ________, and contributions to a Roth retirement plan are ________.

Question

Quizplus · Accepted Answer

Contributions to a traditional retirement plan are tax deductible, meaning that they lower your taxable income for the year. However, when you withdraw money from the account in retirement, you will pay taxes on the distributions. Contributions to a Roth retirement plan are not tax deductible, but withdrawals in retirement are tax-free. Depending on your current and expected future tax bracket, a traditional or Roth plan may be the best choice for you.

Contributions to a Traditional Retirement Plan Are ________, and Contributions