select the correct answer. what is the purpose of tax - deferred retirement accounts? a. to encourage…

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

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