Question

Stephanie's current employer does not offer a retirement plan. What is the best option available for her to save for retirement?


Select the best answer from the choices provided.
She can invest up to $5,000 each year in an IRA.
She can invest in a 401(k) plan that offers tax incentives.
She can contribute part of each month's paycheck to a private pension plan.
She can contribute part of each month's paycheck to a savings account.

Answer 1

@JoannaBlackwelder

Answer 2

I would think a or b.

Answer 3

But it doesn't say how much she would be putting in the 401k, so it is hard to compare.

Answer 4

wait im looking at it

Answer 5

and I'm not sure about the private pension plan thing.

Answer 6

Ok.

Answer 7

c makes no sense

Answer 8

private pension when you're self employed

Answer 9

ill go with D

Answer 10

it doesn't mention her paycheck

Answer 11

sounds reasonable

Answer 12

I would think that the tax incentives for 401k or IRA would be better than savings account for retirement.

Answer 13

wait can anyone open 401 plans?

Answer 14

do you have to be employed

Answer 15

not sure but I think anyone can

Answer 16

B makes more sense then

Answer 17

http://money.cnn.com/retirement/guide/selfemployment_individual401k.moneymag/index.htm?iid=EL

Answer 18

I guess it is more limited than I thought.

Answer 19

401K SOUNDS MORE REASONABLE THEN ROTH

Answer 20

yes

Answer 21

Since she is employed and not a sole proprietor, I don't think she can do an individual 401k.

Answer 22

then a?

Answer 23

Makes sense to me

Answer 24

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

Answer 25

best option save

Answer 26

Rihgt. :)