SIE practice questioneasyAccount Types
A customer wishes to establish a retirement account that allows for tax-deferred growth. Which account type best fits?
- ARoth IRA
- BTraditional IRA✓ Correct answer
- CMargin account
- DCash account
Explanation
Why B — Traditional IRA
A Traditional IRA allows for tax-deferred growth, while a Roth IRA offers tax-free withdrawals instead. Margin and cash accounts are not retirement accounts and do not inherently offer tax-deferred growth.
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