Jill Is 45 Years Old and Thinks That Her Future

question 35

Multiple Choice

Jill is 45 years old and thinks that her future tax rate will be lower than what she currently pays,so she wants to defer her taxes on her contributions of up to $5,000 in 2012.Which plan would allow her to meet her goals?

• A) 401(k) plan
• B) Regular IRA
• C) Roth IRA
• D) SEP plan
• E) Spousal IRA

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Definitions:

Adjudication

The legal process of resolving a dispute or deciding a case, often resulting in a final judgment in court.

Electronic Funds Transfer (EFT)

The electronic transfer of money from one bank account to another, either within a single financial institution or across multiple institutions, through computer-based systems.

Proximately Caused

The action that directly leads to a specific effect or outcome, establishing a clear causal link in legal responsibility.

ATM

An Automated Teller Machine that allows bank customers to perform financial transactions, such as withdrawals and deposits, electronically without a human teller.