One advantage of tax deferral on qualified pension plan contributions is:

Select one:

a. The employee never has to pay taxes on the contribution.

b. Taxes are deferred until withdrawal and investment income can be earned on money that would otherwise have been paid in taxes.

c. Only the employer can earn tax-free investment income; the employee pays taxes immediately but at a reduced rate.

d. The employee pays taxes in the year the employer makes contributions, but then taxes on investment earnings are deferred until withdrawn in retirement.