Question

question 17 2.27 pts
contributing to which of the following will give you an immediate tax benefit?
○ traditional ira
○ regular brokerage account
○ roth ira
○ savings account
question 18 2.27 pts
401(k) and 403(b) plans are the most common retirement plans these days. what are the big advantages to employees with these plans?
○ you may be able to deduct contributions from your income.
○ many firms contribute an employer match.
○ all of the options listed are correct.
○ earnings on your retirement account are tax deferred.

Explanation:

Question 17

To determine which contribution gives an immediate tax benefit, we analyze each option:

• Traditional IRA: Contributions are tax - deductible in the year made, providing an immediate tax benefit (reduces taxable income).
• Regular brokerage account: Contributions are made with after - tax money, no immediate tax benefit.
• Roth IRA: Contributions are made with after - tax money, no immediate tax deduction (tax benefit is on withdrawals in retirement).
• Savings Account: Funds are after - tax, no tax benefit for contributions.

So the correct option is the one with Traditional IRA. But looking at the selected option in the image (Roth IRA) is incorrect. The correct option should be:

Let's analyze the advantages of 401(k) and 403(b) plans for employees:

• “You may be able to deduct contributions from your income”: Contributions to these plans are made pre - tax, reducing taxable income.
• “Many firms contribute an employer match”: Employers often match a portion of employee contributions, effectively giving free money for retirement.
• “Earnings on your retirement account are tax deferred”: Investment earnings grow tax - free until withdrawal, allowing for more compound growth.

Since all these are advantages of 401(k) and 403(b) plans, the correct option is the one stating all options are correct.

Answer:

A. Traditional IRA

Question 18