6. hopes contribution to her retirement plan... a. is a post - tax contribution on which she pays federal…

6. hopes contribution to her retirement plan... a. is a post - tax contribution on which she pays federal income taxes b. is pre - tax and therefore not included in federal income taxes c. is a contribution to her social security d. is taxed at a rate of 15%

6. hopes contribution to her retirement plan... a. is a post - tax contribution on which she pays federal income taxes b. is pre - tax and therefore not included in federal income taxes c. is a contribution to her social security d. is taxed at a rate of 15%

Answer

Answer:

B. is pre - tax and therefore not included in federal income taxes

Brief Explanations:

Many retirement plans allow pre - tax contributions. These contributions reduce taxable income and are not included in federal income taxes in the year they are made. Post - tax contributions (option A) are taxed first and then contributed. Social Security is a different program (option C). There is no general 15% tax rate for retirement plan contributions (option D).