QuestionJuly 18, 2025

Both a 401K and a traditional independent retirement account (IRA) are tax-deferred retirement accounts. "Tax-deferred"means: square square You pay reduced taxes each year on the money you put in your account You are never required to pay any taxes deposited in the account

Both a 401K and a traditional independent retirement account (IRA) are tax-deferred retirement accounts. "Tax-deferred"means: square square You pay reduced taxes each year on the money you put in your account You are never required to pay any taxes deposited in the account
Both a 401K and a traditional independent retirement account (IRA) are tax-deferred retirement
accounts. "Tax-deferred"means:
square 
square 
You pay reduced taxes each year on the money you put in your account
You are never required to pay any taxes deposited in the account

Solution
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Answer

\square Explanation 1. Define "Tax-Deferred" Tax-deferred means you do not pay taxes on contributions or earnings until withdrawal. 2. Evaluate Options You pay taxes upon withdrawal, not reduced taxes each year or never paying taxes.

Explanation

1. Define "Tax-Deferred"<br /> Tax-deferred means you do not pay taxes on contributions or earnings until withdrawal.<br /><br />2. Evaluate Options<br /> You pay taxes upon withdrawal, not reduced taxes each year or never paying taxes.
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