Which of the following is intended primarily to enhance a person's tax advantage and retirement income?

A. U.S. Savings Bond
B. Growth Fund
C. Money market Fund
D. IRA

The answer is D. But to add a little bit of understanding:

A traditional IRA (Individual Retirement Account) allows you to contribute pre-tax dollars, grow the investment, and defer payment of taxes until withdrawal starts at retirement. This pre-supposes that your tax rate will be lower at retirement than it is now.

A Roth IRA allows you to contribute after-tax dollars, but you'll be able to withdraw later tax-free. The presumes - rightly so, I think -that tax rates are relatively low today and it'll be to your benefit to be able to withdraw tax-free later.

This feels like a homework question...
.. i would identify which is tax exempt until retirement.

i only see one of those which meets that req.

Tags

　　Investment Account 　　Invest Money 　　Invest in Gold 　　Invest Fund 　　Income Fund 　　HYIP 　　High Yield 　　Hedge Fund

Related information

What do you think about swisscash? is it money game or mutual fund?

My impression is that they are a scam. They are not registered in Switzerland. See the links below: Sources: ...

HELP...I am trying to find a low cost tax free Muni Fund for AZ?

Hmm not that many AZ Muni Funds out there ... Nuveen has some FAZTX ...

I'm a single mom at age 23. My income is less than 30K. Which way should I go?

Your number one priority is getting life insurance. God forbids if something happens to you, how would your family survive without your income? I suggest getting a 30 year term insurance. Your s...

What is the procedure to invest in Reliance Natural Resource Fund, can anyone suggest how to do it please?

Go to reliance mutual fund website and download the application form. ...

Where should we invest or save our personal income?

You should invest in stocks, bonds, and money market funds. You want to buy a diversified portfolio of stocks, as individual stocks are too risky. For most folks this means buying mutual funds. I ...

Is January 2, 2008, the earliest date that I can fund my 2008 IRA?

Yes, 1/2 is the earliest date unless your broker is open New years day. The max contribution for someone over 55 is $6,000 in 2008 for someone with your age and income. (Assuming tax AGI is les...

Please solve this question?i read in clas X and i cannot solve income tax questions?plz.. help me?

Hi dimple Her total salary comes to Rs.397,000 (32,250*12) Deduction u/s 80C 95,000(60,000+10,000+25,000) Deduction u/s 80G 15,000(12,000+3,000) So total tax...

What is the minimum employee strength required to pay Provident Fund by a company?

20 or more employees

...