Which of the Following Is a True Statement Regarding Saving

question 82

Multiple Choice

Which of the following is a True statement regarding saving for retirement?

• A) In a given year, a taxpayer may participate in either an employer-sponsored defined benefit plan or defined contribution plan but not both.
• B) In a given year, a taxpayer who receives salary as an employee and also receives self-employment income may participate in an employer-sponsored defined contribution plan or may contribute to a self-employed retirement account but not both.
• C) In a given year, a taxpayer may contribute to an IRA (either traditional or Roth) or contribute to a self-employment retirement account but not both.
• D) None of the choices is a True statement.

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Definitions:

Stress

A psychological and physical response to demands or threats, which can affect an individual's health and well-being.

Depression

A mental health disorder characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities, significantly affecting daily life.

Aggression

Behavior intended to harm or intimidate others, often manifesting through physical, verbal, or psychological means.

Substance Abuse

The dangerous consumption of mind-altering substances, such as alcohol and illegal drugs, which results in addiction or dependency.