5
QuizMultiple Choice

Building a Smart Retirement Plan — Quiz

Question 5 • Personal Finance

A tax-deferred account means taxes are paid ______.

Answer
A
later at withdrawal
B
never
C
annually
D
immediately

Explanation

In a tax-deferred account, taxes on the money or its investment growth are postponed rather than paid right away. They are generally due when money is withdrawn, so “later at withdrawal” is correct; tax-deferred does not mean taxes are never paid.

AI-written and checked against the verified answer.

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