Alyssa wants to open an individual retirement account (IRA) to provide for her personal retirement needs. What is something she should consider when deciding between a traditional IRA versus a Roth IRA?
A) If she doesn't make enough money, she cannot fund a Roth IRA.
B) In a traditional IRA, the interest earned may be deferred tax-free until retirement; while in a Roth IRA, no tax is paid on the distribution withdrawn at retirement.
C) Traditional IRAs can be invested in more diverse financial assets than Roth IRAs.
D) Investors can contribute more to Roth IRAs than traditional IRAs.
E) Roth IRAs give individuals more freedom to choose their investments than traditional IRAs.
Correct Answer:
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