Which types of retirement accounts are generally tax-deductible?

The correct option identifies traditional IRAs and certain employer-sponsored plans as generally tax-deductible retirement accounts. Contributions made to traditional IRAs can be deducted from taxable income, resulting in a lower tax bill for the contributor in the year the contribution is made. These deductions are subject to income limits and other criteria, but in many cases, they provide an immediate tax benefit.

In addition to traditional IRAs, employer-sponsored plans such as 401(k)s and other similar retirement plans allow employees to contribute pre-tax dollars, effectively reducing their taxable income. These contributions grow tax-deferred until they are withdrawn, usually in retirement, when they may be taxed as ordinary income, rather than when the contributions were made.

The other options presented do not offer the same tax-deductibility on contributions to retirement accounts. For example, Roth IRAs allow for tax-free distributions in retirement, but contributions are made with after-tax dollars, meaning they are not tax-deductible. Health Savings Accounts (HSAs) provide tax benefits, but they are designed primarily for healthcare expenses rather than for traditional retirement savings. Additionally, post-tax investment accounts and cryptocurrency wallets are not classified as retirement accounts and do not provide tax deductions for contributions.