1
QuizMultiple Choice

Planning and Paying for College — Quiz

Question 1 • Personal Finance

What is a tax advantage?

Answer
A
required withdrawals
B
reduced or delayed taxes on earnings
C
guaranteed returns
D
increased fees

Explanation

A tax advantage means taxes on investment earnings are reduced or postponed. For example, some accounts let earnings grow tax-deferred, so taxes are paid later rather than each year. It does not mean returns are guaranteed or that fees increase.

AI-written and checked against the verified answer.

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