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.

---

Definitions:

Completeness

The attribute of being whole or perfect, with no missing parts or elements.

Consistency

In the context of data, it refers to the reliability and uniformity of information stored across a database or a system.

Alphabetic

Pertaining to a set of letters or symbols arranged in a customary fixed order used in written language.

Numeric

Relating to or consisting of numbers, often used in the context of data types in computer programming.