Which of the following statements is incorrect?

A) Tax-deferred plans have an accumulation period and a distribution period.
B) Normally,if a retirement plan is funded with dollars that have already been taxed,the distributions will be taxed.
C) During the accumulation period of a qualified retirement plan no taxes are due on the earnings from the plan investments.
D) Contributions to retirement plans are often limited in amount.

Tax-Deferred Plans

Investment accounts, such as IRAs or 401(k)s, where contributions may reduce taxable income in the year made, with taxes paid later upon withdrawal.

Accumulation Period

The phase in some investment vehicles, such as annuities, during which an investor builds up their investment value through payments or investment returns.

Distribution Period

The timeframe over which payments are made from a retirement or investment account to the account holder.