You are 29-years-old and working in the marketing department of a medium-sized corporation. You are earning an annual salary of $65,000 paid every two weeks. Your employer provides a 401(k) plan, and matches employee contributions by 50% up to a maximum of 4% of your annual salary. You are in a 25% marginal tax rate. Read each of the statements below and indicate whether it reflects an advantage associated with investing in a tax-sheltered retirement account.

a. It is best that your contributions start later rather than sooner.
b. Retirement accounts provide their greatest advantage when you start saving earlier—rather than later—in your lifetime.
c. The greater your marginal tax rate, the greater the tax savings associated With contributions to a tax-sheltered retirement account.