*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money is deposited; a Roth IRA allows tax deductions when the money is deposited and then the money is taxed when it is withdrawn; and a traditional IRA is taxed when the money is withdrawn.
B.) A 401k allows tax deductions when the money is deposited and then the money is taxed when it is withdrawn; a Roth IRA is taxed when the money is deposited; and a traditional IRA is taxed when the money is withdrawn.
C.) A 401k is taxed when the money is withdrawn; a Roth IRA allows tax deductions when the money is deposited and then the money is taxed when it is withdrawn; and a traditional IRA is taxed when the money is deposited.
D.) A 401k is taxed when the money is withdrawn; a Roth IRA is taxed when the money is deposited; and a traditional IRA allows tax deductions when the money is deposited and then the money is taxed when it is withdrawn.
The answer should be D, I crossed out C because a traditional IRA IS only taxed when money is withdrawn. I got rid of A because a 401k doesn't get taxed when money is deposited but when money is withdrawn.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 I crossed out B because a Roth IRA allows you to pay taxes on money deposited not withdrawn.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.
