Evan works for an employer that does not provide a retirement plan as a benefit. He earns $175,000 per year. He plans to fund his own retirement account through his local bank. Which of the following would best suit Evan?

Question

Quizplus · Accepted Answer

A traditional IRA is a tax-advantaged retirement savings account that allows individuals to save for retirement on a tax-deferred basis. This means that contributions to a traditional IRA are made on a pre-tax basis, reducing the individual's current taxable income. Withdrawals from a traditional IRA are taxed as ordinary income when taken in retirement.

Evan Works for an Employer That Does Not Provide a Retirement