select the correct answer. what is the purpos...
select the correct answer. what is the purpose of tax - deferred retirement accounts? a. to encourage consumers to invest money before it is taxed b. to level high taxes on a consumer at retirement age c. to collect taxes during retirement at higher rates d. to trick consumers into investments that will incur fines and penalties
Answer
# Brief Explanations:
Tax - deferred retirement accounts allow individuals to invest pre - tax income, which grows tax - free until withdrawal during retirement. This encourages people to save for retirement by reducing their current tax burden. Options B, C, and D are incorrect as they do not align with the purpose of these accounts.
# Answer:
A. to encourage consumers to invest money before it is taxed