Why does a tax-deferred retirement account accumulate more money than a taxable account, assuming the same amount is contributed every year and the accounts earn the same return every year?
A) There are different investment options available for tax-deferred accounts.
B) You can take bigger risks with assets that generate higher returns in a tax-deferred account.
C) With tax-deferred accounts, there are no income or capital gains tax liabilities on account activity.
D) All of the above are correct
E) Only A and B are correct.
Answer: C
Business
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