If You Have Fully Funded Your 401(k)and Profit-Sharing Plans,you May

question 88

Multiple Choice

If you have fully funded your 401(k) and profit-sharing plans,you may choose to enhance your retirement savings by using this plan that allows you to withdraw money from the account tax-free and penalty-free after five years.

• A) Annuity
• B) Keogh plan
• C) Roth IRA
• D) SEP plan
• E) Spousal IRA

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Definitions:

Venture Capital

Financing that investors provide to startup companies and small businesses believed to have long-term growth potential.

Start-Up

A newly established business, often focused on a unique product or service, aiming for rapid growth and market penetration.

Retained Earnings

The portion of a company's profits that is kept in the business after dividends have been paid to shareholders, used for reinvestment.

Undistributed Profits

Earnings that a company has made that are not paid out as dividends to shareholders and are instead reinvested in the business or kept as reserves.