The tax-deferred investment plan that allows employees to save part of their income for retirement is called a(n):
A) 60/40 plan.
B) individual retirement account.
C) 704(i) plan.
D) Keogh plan.

Question

Quizplus · Accepted Answer

A 401(k) plan is the most common tax-deferred investment plan offered by employers to save for retirement, but it is not listed as an option among the answer choices. Of the given options, the individual retirement account (IRA) is the tax-deferred investment plan that allows employees to save part of their income for retirement on their own, without employer involvement. The other options (60/40 plan, 704(i) plan, Keogh plan) are not common retirement savings plans available to most employees.

The Tax-Deferred Investment Plan That Allows Employees to Save Part