Taxpayers Often Have to Decide Between Contributing to a Traditional

question 51

Multiple Choice

Taxpayers often have to decide between contributing to a traditional nondeductible IRA or a Roth IRA.In making the comparison between the two IRAs,which models should the taxpayer use?

• A) \[\begin{array} { | l | l | }
• \hline \text { Traditional Nondeductible } & \\
• \text { IRA } & \text { Roth IRA } \\
• \hline \text { Deferred Model } & \text { Exempt Model } \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | l | }
• \hline \text { Traditional Nondeductible } & \\
• \text { IRA } & \text { Roth IRA } \\
• \hline \text { Exempt Model } & \text { Deferred Model } \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | l | }
• \hline \text { Traditional Nondeductible } & \\
• \text { IRA } & \text { Roth IRA } \\
• \hline \text { Pension Model } & \text { Deferred Model } \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | l | }
• \hline \text { Traditional Nondeductible } & \\
• \text { IRA } & \text { Roth IRA } \\
• \hline \text { Pension Model } & \text { Exempt Model } \\
• \hline
• \end{array}\]