Question

Evan works for an employer that does not provide a retirement plan as a benefit. He earns $175,000 per year. He plans to fund his own retirement account through his local bank. Which of the following would BEST suit Evan?
a. A Roth IRA
b. A traditional IRA
c. A taxable account

Answer 1

Answer:

The answer is B. A traditional IRA

Explanation:

A traditional IRA is set up by an individual on their own behalf in order to save for retirement. Here, only the owner(Evan) makes contributions to the account.

For those category of people that their employers do not offer them a retirement plan, traditional IRA is a great option for them.

One of the advantages is that advantage is that it allows an individual to make annual tax-deductible contributions to one's retirement fund