Also known as tax-deferred accounts, before-tax retirement accounts generally include traditional individual retirement accounts (IRAs) and...
Also known as tax-deferred accounts, before-tax retirement accounts generally include traditional individual retirement accounts (IRAs) and 401ks. What does before-tax mean?
Choose one answer.
| a. Before-tax means that the taxpayer has not paid tax on it and the contribution will never be included in their taxable income. | ||
| b. Before-tax means that the taxpayer has paid tax on it and the contribution was not included in their taxable income for the year. | ||
| c. Before-tax means that the taxpayer has paid tax on it and the contribution is deductible when they retire. | ||
| d. Before-tax means that the taxpayer has not paid tax on it and the contribution has not been included in their taxable income in the year of the contribution, but will be included in taxable income when taken out of the retirement account. |
Homework Answers
the answer for the above question is option D:Before-tax means that the taxpayer has not paid tax on it and the contribution has not been included in their taxable income in the year of the contribution, but will be included in taxable income when taken out of the retirement account.
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