If a person’s retirement account contributions may be deducted from his/her income taxes, then these contributions are considered to beMultiple ChoiceSEP contributions.Roth contributions.tax-free contributions.post-tax.pre-tax.

Which of the following is not a pre-tax account for investing?Group of answer choicessavings account401(k) plans403(b) plansPensionsTraditional IRAs

What is the purpose of a Roth IRA in retirement planning?Question 7AnswerA.To invest in speculative assetsB.To guarantee fixed returnsC.To provide short-term loansD.To offer tax-free withdrawals in retirement

Fill in the Blank QuestionFill in the blank question.By investing in a Roth IRA, your investment is potentially free.

Multiple Choice QuestionState and local income taxes are deductible for:Multiple choice question.federal tax purposes.charitable donations.authorized persons.

One retirement account option allows a worker to save money without paying taxes, but requires the worker to pay taxes on funds withdrawn from the account upon retirement. A second option requires the worker to pay taxes upfront, but allows the worker to withdraw funds tax-free upon retirement. Assuming that the total amount available in the worker’s retirement account at retirement is higher than the total amount contributed prior to retirement, workers can expect to pay less in taxes overall if they choose the second option.Which of the following pieces of information would be most useful in determining whether the conclusion is valid for an individual worker?(A) The amount of money the worker will contribute to the retirement plan over his or her career.(B) The amount that tax rates will increase in the future.(C) Whether or not inflation will be lower than the retirement account’s annual earnings.(D) How the worker’s tax bracket in retirement compares to his or her tax bracket while still employed. (E) The dollar value of the worker’s account upon retirement