Question

Which factor makes an IRA superior to a regular stock portfolio for saving for retirement?


Select the best answer from the choices provided.
IRAs are exempt from some taxes.
IRAs earn money at a higher interest rate.
IRAs do not go up and down like stocks do.
IRAs usually include employer contributions.

Answer 1

@JoannaBlackwelder

Answer 2

im going with A

Answer 3

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 4

D makes no sense

Answer 5

In addition, tax exemptions also make IRAs an attractive way to save for retirement.

Answer 6

@JoannaBlackwelder

Answer 7

Agreed.