Question

contributions to what types of account are made with post - tax dollars so that when they are withdrawn during retirement, no taxes are owed?

• social security
• employer - sponsored retirement funds
• traditional 401(k) and traditional ira
• roth 401(k) and roth ira

Explanation:

To determine the correct answer, we analyze each option:

• Social Security: Not an account where contributions are made with post - tax dollars for the described retirement withdrawal tax - free benefit.
• Employer - sponsored retirement funds: This is a broad category. Most employer - sponsored plans like traditional 401(k) use pre - tax dollars.
• Traditional 401(k) and traditional IRA: Contributions to these are made with pre - tax dollars, and taxes are paid upon withdrawal.
• Roth 401(k) and Roth IRA: Contributions to these accounts are made with post - tax dollars. As a result, when withdrawals are made during retirement, no taxes are owed on the qualified distributions.

Answer:

D. Roth 401(k) and Roth IRA