SIE practice questioneasyRetirement Accounts – IRA
Which of the following accounts allows for tax-deductible contributions, subject to income limits?
- A401(k)
- BRoth IRA
- CTraditional IRA✓ Correct answer
- DTrust account
Explanation
Why C — Traditional IRA
Traditional IRAs may allow tax-deductible contributions based on income and retirement plan participation. Roth IRA contributions are never deductible; 401(k) contributions are via employer plans.
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