Answered

Welcome to Westonci.ca, the place where your questions are answered by a community of knowledgeable contributors. Discover in-depth answers to your questions from a wide network of experts on our user-friendly Q&A platform. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.

A tax exempt employee benefit is usually more adavantages to the employee than a tax deferred benefit

Sagot :

Answer:

Step-by-step explanation:

Yes, it is, more or less. This is because with a tax-deferred account, tax savings are gotten when you make contributions, but when it then comes to a tax-exempt account, the withdrawals are instead free of tax during retirement.

In a tax-deferred account, you can make immediate tax deductions as much as the full amount of your intended contribution, but then, subsequent withdrawals from the same account will be taxed at the normal income rate.

On the other hand, tax-exempt accounts don't deliver a tax benefit, particularly when you contribute to the them, they provide tax benefits that comes much later

We appreciate your time. Please revisit us for more reliable answers to any questions you may have. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.