Which of the following describes "tax-advantaged accounts"?

Tax-advantaged accounts refer to financial accounts that offer special tax benefits which can enhance savings and investment growth. These benefits may include tax deductions for contributions, tax-free growth on investments, or tax-free withdrawals, depending on the account type. Common examples of tax-advantaged accounts in Canada are Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs), which are designed to encourage savings for retirement and other long-term goals by providing tax incentives.

The other options do not accurately capture the essence of tax-advantaged accounts. For instance, accounts with higher taxes would defeat the purpose of being tax-advantaged, and accounts with no contribution limits or those managed solely by financial advisors do not inherently possess the tax advantages that are the primary characteristic of these accounts. Therefore, the correct understanding of tax-advantaged accounts focuses on the special tax benefits they provide, which significantly aids in wealth accumulation and effective financial planning.