Question

employment benefits and deductions quick check
what is an advantage of investing pre-tax dollars in a retirement account? (1 point)
you will have that money to live on after you retire.
you can work less now because you will have money to spend later.
as more time passes after you retire, your payments become larger.
if you withdraw the saved money after retirement, you will most likely pay a lower tax rate on it.

Explanation:

Pre-tax retirement accounts reduce your taxable income in the present, and when you withdraw funds in retirement, your income (and thus tax rate) is typically lower than during your working years, making this the key advantage of pre-tax contributions. The other options are either not unique to pre-tax accounts or incorrect.

Answer:

D. If you withdraw the saved money after retirement, you will most likely pay a lower tax rate on it.