Respuesta :
Answer:
A possible advantage of participating in your employer’s retirement plan is that your taxable income is reduced.
Explanation:
- The amount that you contribute to your retirement plan sponsored by the employer is secluded from the tax slab of the state and federal government.
- This amount, though having been secluded from the tax slab, is still deemed as legal because the laws pertaining to retirement plans allow for such a provision.
- If your taxable income for the year is $40,000 and you choose to contribute $3000 to the employer sponsored retirement plan, the tax would then we calculated only on the remaining $37,000 of your income.
