What Is One Advantage in Participating in a Registered Retirement

question 23

Multiple Choice

What is one advantage in participating in a registered retirement savings plan?

• A) You always pay taxes on these contributions during the year you contribute.
• B) You are allowed to contribute 50% of your income.
• C) Time value of money does not apply.
• D) The amount you deposit can be used as a deduction on your income tax.

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Definitions:

Federal Laws

Laws established by the national government of a country that apply throughout the country and override local and state laws.

Agents

Individuals or entities authorized to act on behalf of others in transactions or negotiations.

Employees

Individuals who work for another person or organization in return for compensation.

Expressed Agency

An agency created in a written or oral agreement. Also called agency by agreement.