Question

*PLEASE ANSWER !!! I DONT GET IT, ILL MARK BRAINLIEST!!*

Explain the differences in how a 401k, a Roth IRA, and a traditional IRA are taxed.(1 point)

A.) A 401k is taxed when the money is deposited; a Roth IRA allows tax deductions when the money is deposited and then the money is taxed when it is withdrawn; and a traditional IRA is taxed when the money is withdrawn.

B.) A 401k allows tax deductions when the money is deposited and then the money is taxed when it is withdrawn; a Roth IRA is taxed when the money is deposited; and a traditional IRA is taxed when the money is withdrawn.


C.) A 401k is taxed when the money is withdrawn; a Roth IRA allows tax deductions when the money is deposited and then the money is taxed when it is withdrawn; and a traditional IRA is taxed when the money is deposited.

D.) A 401k is taxed when the money is withdrawn; a Roth IRA is taxed when the money is deposited; and a traditional IRA allows tax deductions when the money is deposited and then the money is taxed when it is withdrawn.

Answer 1

Answer:

D.

Explanation:

because this a likely explanation

Answer 2

Answer:

The answer should be D, I crossed out C because a traditional IRA IS only taxed when money is withdrawn. I got rid of A because a 401k doesn't get taxed when money is deposited but when money is withdrawn. So now B and D are left. I crossed out B because a Roth IRA allows you to pay taxes on money deposited not withdrawn. So D is your answer.