Ben Carmichael has been making contributions into an individual retirement account for his retirement.His contributions are tax deductible as his employer does not offer a retirement plan.What type of individual retirement account does he have?

Question

Quizplus · Accepted Answer

Since his contributions are tax deductible, it indicates he has a traditional IRA. This is because Roth IRA contributions are not tax deductible, and neither are contributions to a Coverdell Education Savings Account. Spousal IRA is a type of IRA where a non-working spouse can contribute to an IRA using the income of their working spouse, and 401(k) is an employer-sponsored retirement plan. So, the best choice is A) Traditional IRA.

Ben Carmichael Has Been Making Contributions into an Individual Retirement