Question

Vaughn has just graduated college and is looking for a job in his new career field. In the meantime, he is working a part-time hourly wage job and wants to start saving for retirement. He expects that his income will grow significantly in the years to come. His bank asks whether he wants a pre-tax plan or a post-tax plan. Which should he choose?

A pre-tax plan—his top marginal tax rate will likely be lower in the future.
A pre-tax plan—his top marginal tax rate will likely be higher in the future.
A post-tax plan—his top marginal tax rate will likely be lower in the future.
A post-tax plan—his top marginal tax rate will likely be higher in the future.

Answer 1

Answer: post tax plan, because his top marginal tax rate will be higher

Explanation: I just took the test and the answer is correct.