Which of the following has the benefit that your contributions reduce your tax consequence in the year when you make the contribution to your retirement account?
A) a mutual fund
B) a Roth IRA
C) an exchange traded fund
D) an RRSP

Question

Quizplus · Accepted Answer

An RRSP (Registered Retirement Savings Plan) is a tax-deferred retirement account, meaning that your contributions are deducted from your taxable income in the year you make them, reducing your tax consequence. As a result, it is a beneficial choice for retirement savings due to the tax advantages it provides. The other options do not offer this specific benefit.

Which of the Following Has the Benefit That Your Contributions