Which of the Following Is a True Statement Regarding Saving

question 26

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 these is a true statement

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Definitions:

Consumer Price Index

An index measuring the average change in prices over time that consumers pay for a basket of goods and services.

Subsidies

Financial support provided by the government to individuals, businesses, or institutions to encourage production or consumption of certain goods or services.

Healthcare Consumers

Individuals who use, are affected by, or are potential users of health care services.

Third-Party Payments

Transactions where a person or entity makes a payment on behalf of another, often seen in healthcare insurance.