Fred and Carlie want to save some money for a down payment on a house.They figure it will take at least 10 years to save up enough money.Which of the following would be the best way for them to save this money?

Question

Quizplus · Accepted Answer

A Roth IRA would be the best choice for Fred and Carlie as they plan to save for at least 10 years. Roth IRA offers tax-free growth and withdrawals, and there are no minimum distributions required at a certain age, making it a flexible savings option for long-term goals like buying a house. The other options, such as traditional IRA, Keogh Plan, and 529 Savings Plan, have restrictions on withdrawals or contributions, which may not be suitable for their goal of saving for a down payment on a house.

Fred and Carlie Want to Save Some Money for a Down