Question

Which of the following is not a benefit of contributing to a retirement account? A. No need to pay taxes

Answer 1

The correct answer was no need to pay taxes. Not D. Apex confirmed

Answer 2

Answer:

option A is correct, i.e. "No need to pay taxes" is not a benefit of contributing to a retirement account.

Step-by-step explanation:

Retirement Accounts are suitable for getting regular income after retirement age. It helps in accumulating wealth for retirement by contributing small amounts in regular interval during employment. Its features are reduction in taxable income, employer matching, and contributions earning interest once deposited. Still there are some chances to pay taxes as per relevant income slabs.

Hence, option A is correct, i.e. "No need to pay taxes" is not a benefit of contributing to a retirement account.