Withdrawals after retirement from a traditional retirement plan are ________, and withdrawals after retirement from a Roth retirement plan are ________.

A) taxable; not taxable
B) not taxable; taxable
C) tax deductible; not tax deductible
D) not tax deductible; tax deductible

Traditional Retirement Plan

A retirement savings plan that offers tax advantages to the saver, typically involving pre-tax contributions that grow tax-deferred until withdrawals begin at retirement.

Roth Retirement Plan

A type of retirement savings account allowing the saver to pay taxes on the money going into the account, with subsequent withdrawals being tax-free.

Taxable

Subject to taxation by government authorities.