21
QuizMultiple Choice

Preparing for the Future

Question 21 • *STPSB_Quest for Success 2627 James

Individual Retirement Accounts (IRAs) are very popular because ______.

Answer
A
They include a large variety of stock options
B
They are not taxed until retirement
C
They have very high rates of return
D
They have unlimited contribution potential

Explanation

Traditional IRAs are popular because taxes on investment earnings are generally deferred until money is withdrawn, often during retirement. This lets the account grow without annual taxes on those earnings. IRAs do not guarantee high returns or allow unlimited contributions.

AI-written and checked against the verified answer.

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