What is the purpose of tax deferred retirement accounts? a. to encourage consumers to invest money before it is taxed b. to level high taxes on a consumer at retirement age c. to collect taxes during retirement at higher rates d. to trick consumers into investments that will incur fines and penalties

The answer is:  A) To encourage consumers to invest money before it is taxed

Tax deferred retirement account would make the amount of money that you earn during your productive age to be allocated into investment for your old age without deductions form the government. Government created this account to encourage people to save since young age in order to minimize the amount of federal fund that should be allocated for citizens in older years.

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