Your friend Jenny says a Roth IRA has the best tax advantages, because you pay taxes...
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Your friend Jenny says a Roth IRA has the best tax advantages, because you pay taxes now and won't have to pay them when you take the money out in retirement. Why might she be right? 2. Your friend Jomaine says a Traditional IRA or 401(k) has the best tax advantages because you don't pay any taxes now, and you can wait until you retire to pay taxes. Why might he be right? 3. Your friend Sonia says pensions and 401(k)s are the best retirement options because they offer you "free money." What does she mean by this? Does she have a good point? Why or why not? 4. If your friend Raheem asks you, "What type of account should I use to save for retirement," what would you tell him? Your friend Jenny says a Roth IRA has the best tax advantages, because you pay taxes now and won't have to pay them when you take the money out in retirement. Why might she be right? 2. Your friend Jomaine says a Traditional IRA or 401(k) has the best tax advantages because you don't pay any taxes now, and you can wait until you retire to pay taxes. Why might he be right? 3. Your friend Sonia says pensions and 401(k)s are the best retirement options because they offer you "free money." What does she mean by this? Does she have a good point? Why or why not? 4. If your friend Raheem asks you, "What type of account should I use to save for retirement," what would you tell him?
Expert Answer:
Answer rating: 100% (QA)
Jenny is right in saying that a Roth IRA has significant tax advantages With a Roth IRA contributions are made with aftertax dollars meaning youve alr... View the full answer
Related Book For
Quantitative Analysis for Management
ISBN: 978-0132149112
11th Edition
Authors: Barry render, Ralph m. stair, Michael e. Hanna
Posted Date:
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