10/10 which of the following best describes a pre - tax contribution? a a contribution made after income…

10/10 which of the following best describes a pre - tax contribution? a a contribution made after income taxes are applied, which is taxed again when withdrawn in retirement. b a contribution made before taxes are applied, which isnt taxed when withdrawn in retirement. c a fee paid to the government to manage your retirement account. d a contribution made to a retirement account before any taxes are applied, which is taxed when withdrawn in retirement.

10/10 which of the following best describes a pre - tax contribution? a a contribution made after income taxes are applied, which is taxed again when withdrawn in retirement. b a contribution made before taxes are applied, which isnt taxed when withdrawn in retirement. c a fee paid to the government to manage your retirement account. d a contribution made to a retirement account before any taxes are applied, which is taxed when withdrawn in retirement.

Answer

Brief Explanations:

Pre - tax contributions are made to retirement accounts before income taxes are deducted from earnings. These contributions reduce taxable income in the year they are made, but the withdrawals in retirement are taxed as ordinary income.

Answer:

D. A contribution made to a retirement account before any taxes are applied, which is taxed when withdrawn in retirement.