Which of the following is an example of a tax-advantaged retirement savings plan?

A 403(b) plan is an example of a tax-advantaged retirement savings plan because it allows individuals to contribute pre-tax income toward their retirement savings. This means that the contributions are deducted from your taxable income, and taxes on the earnings are deferred until withdrawal, typically during retirement when you may be in a lower tax bracket.

This structure incentivizes saving for retirement, as individuals can grow their investments without the immediate burden of tax payments on the returns. Furthermore, employers, often in the education or nonprofit sectors, may also match a portion of employee contributions, enhancing the retirement savings potential.

In contrast, a traditional checking account is simply a place to store money for daily transactions and does not offer any tax benefits. A standard savings bond is considered a low-risk investment but does not offer tax advantages specifically tied to retirement savings. Similarly, a consumer credit card is a financing tool that can accumulate debt and interest but does not function as a savings or investment vehicle. Thus, the 403(b) stands out as it directly supports long-term retirement goals in a tax-efficient manner.