Question

Simon, 35, works for a company which offers a 4% match to his 401(k) plan. He previously invested $25,000 into an IRA. What would be the most beneficial retirement investing strategy for Simon?


Select the best answer from the choices provided.
investing 4% of his salary in the 401(k)
investing 4% of his salary in the IRA instead of the 401(k)
investing 2% of his salary in the 401(k) and 2% in his IRA
investing in a new Roth IRA with 5% of his salary

Answer 1

@JoannaBlackwelder

Answer 2

I think we did this one before. I thought it was a, but I'm not sure.

Answer 3

i know but i wanna make sure

Answer 4

What would be the benefit of the IRA or Roth IRA that he wouldn't get with the 401k plus matching?

Answer 5

Two types of IRAs, traditional IRAs and Roth IRAs, have different types of tax exemptions. Traditional IRAs give an immediate tax break but may require paying some tax in retirement. Roth IRAs give no immediate tax benefit, but the contributions and earnings are tax-free in retirement. Because most people who save money pay taxes, both types of IRAs are good options to saving for retirement.

Answer 6

read this

Answer 7

It could be the Roth IRA as he wouldn't have to pay taxes on earnings.

Answer 8

its A makes a bit sense

Answer 9

ployees should contribute at least 4%

Answer 10

employees

Answer 11

401(k) plans are tax-free until the year the money is withdrawn, usually after retirement.

Answer 12

Right, but in the Roth IRA he contributes 5%

Answer 13

D sense now

Answer 14

Right, tax free up front means you have to pay taxes on your interest.

Answer 15

d makes sense now

Answer 16

Does a 4% match mean that his money is doubled for the 401k if he contributes 4%?

Answer 17

yeh

Answer 18

idk...

Answer 19

a or d

Answer 20

the employer is matching with 4%

Answer 21

If an employer matches up to 4%, employees should contribute at least 4%.

Answer 22

for sure

Answer 23

its D

Answer 24

lets go with that

Answer 25

both types of IRAs are good options to saving for retirement.

Answer 26

came from a source

Answer 27

Ok, but would it be better than being doubled in a 401k?

Answer 28

its A

Answer 29

8%

Answer 30

Makes sense.