What are the major differences between the new IRAs and the traditional IRA?
What will be an ideal response?
Answer: All three of them are on a tax-deferred basis for individuals. They are separate from any employer plan. The traditional IRA can be fully tax-deductible, partially tax-deductible, or not tax-deductible, depending on the amount of your earnings and whether your spouse or you yourself have a company retirement plan. The Roth IRA does not have tax-deductible contributions, but rather has tax-free withdrawals upon retirement. The Coverdell Education Savings Account (Education IRA) is just like the Roth IRA except that contributions are limited to $2000 annually per child for each child younger than 18.
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In states where an LLC (limited liability company) may be organized by only one member, ________ can obtain the benefit of the limited liability shield of an LLC
A) corporations B) sole proprietors C) LLPs (limited liability partnerships) D) general partnerships