Question

which statements are true regarding a traditional individual retirement account? choose three answers. employers create them and match employee contributions. people can contribute to the account until retirement age. people can withdraw money penalty - free at any time. contributions to the account are limited each year. contributions reduce taxable income.

Explanation:

1. Traditional IRAs are set - up by individuals, not employers matching contributions.
2. People can contribute to a traditional IRA until retirement age.
3. Early withdrawals usually incur penalties, not penalty - free at any time.
4. There are annual contribution limits for traditional IRAs.
5. Contributions to a traditional IRA are tax - deductible, reducing taxable income.

Answer:

• People can contribute to the account until retirement age.
• Contributions to the account are limited each year.
• Contributions reduce taxable income.