Question
What is an advantage of investing pre-tax dollars in a retirement account?(1 point)
Responses
1. You will have that money to live on after you retire.
2. You can work less now because you will have money to spend later.
3. As more time passes after you retire, your payments become larger.
4. If you withdraw the saved money after retirement, you will most likely pay a lower tax rate on it.
Responses
1. You will have that money to live on after you retire.
2. You can work less now because you will have money to spend later.
3. As more time passes after you retire, your payments become larger.
4. If you withdraw the saved money after retirement, you will most likely pay a lower tax rate on it.
Answers
GPT-4o mini
The correct response is:
4. If you withdraw the saved money after retirement, you will most likely pay a lower tax rate on it.
This is a significant advantage of investing in a retirement account with pre-tax dollars, as many individuals find themselves in a lower tax bracket after retiring compared to their working years.
4. If you withdraw the saved money after retirement, you will most likely pay a lower tax rate on it.
This is a significant advantage of investing in a retirement account with pre-tax dollars, as many individuals find themselves in a lower tax bracket after retiring compared to their working years.