What Is a Difference Between the Typical Structure of a Retirement

question 134

Multiple Choice

What is a difference between the typical structure of a retirement savings account (401(k) ) and an individual retirement arrangement (IRA) ?

• A) IRAs typically earn interest, but 401(k) accounts typically earn dividends.
• B) IRA contributions are typically made with pretax income while 401(k) contributions are made with post tax income.
• C) Employers often match 401(k) contributions, but they do not match IRA contributions.
• D) Taxes are due on withdrawals from an IRA but not on withdrawals from a 401(k) account.

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