In the Context of Building Wealth for Retirement, Identify a True

question 52

Multiple Choice

In the context of building wealth for retirement, identify a true statement about a traditional individual retirement account (IRA) .

• A) You must pay taxes on the money received from a traditional IRA when you begin making withdrawals.
• B) Earnings on the contributions you make to a traditional IRA are tax-free.
• C) There is no limit on the amount that you can contribute each year to a traditional IRA.
• D) The contributions you make to a traditional IRA are not tax deductible at the time you make them.

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Definitions:

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, suggesting that people are motivated to fulfill basic needs before moving on to other needs, culminating in self-actualization.

Avoidance Motivation

A psychological behavior aimed at avoiding unpleasant outcomes, tasks, or situations, often driven by fear or anxiety about potential negative consequences.

Safety And Security

The state of being protected from harm or other non-desirable outcomes. It encompasses both physical safety and psychological security.

Property

Legally recognized rights and interests in objects, land, or intellectual creations, signifying ownership or possession.