Question

there are two major types of iras; the traditional and the roth. which one 2 points of these accounts is tax deductible, meaning you wont pay taxes on any you contribute this year?
traditional
roth
both
neither
the sep ira stands for ___. 2 points
separate
standard employee program
systematic engineered patent
simplified employee pension

Explanation:

• First question: In a Traditional IRA, contributions are tax - deductible in the year they are made. For a Roth IRA, contributions are made with after - tax dollars (no tax deduction for contributions). So the Traditional IRA is the one that is tax - deductible for contributions in the year of contribution.
• Second question: SEP IRA is an abbreviation for Simplified Employee Pension Individual Retirement Account. It is a type of retirement plan for small business owners and self - employed individuals.

Answer:

• First question: Traditional
• Second question: Simplified Employee Pension