The benefit of a(n) _____ is that the contributions you make reduce your taxable income in the same tax year, and the earnings on your contributions are tax deferred, allowing them to grow more rapidly.
A) mutual fund
B) Roth individual retirement account
C) Exchange Traded Fund
D) traditional individual retirement account

Question

Quizplus · Accepted Answer

A traditional individual retirement account (IRA) allows contributions to reduce taxable income in the year they are made, and the earnings grow tax-deferred until withdrawal.

The Benefit of A(n) _____ Is That the Contributions You