which of the following retirement plans places a maximum amount that an individual can contribute to the…

which of the following retirement plans places a maximum amount that an individual can contribute to the fund in a given year at $5,000?\na. 401(k)\nb. tax - deferred annuity\nc. pension\nd. ira\nplease select the best answer from the choices provided

which of the following retirement plans places a maximum amount that an individual can contribute to the fund in a given year at $5,000?\na. 401(k)\nb. tax - deferred annuity\nc. pension\nd. ira\nplease select the best answer from the choices provided

Answer

Brief Explanations:

  1. 401(k): In 401(k) plans, the contribution limits are relatively high. For 2024, the employee - contribution limit is $23,000 (for those under 50), well above $5,000.
  2. Tax - Deferred Annuity: Contribution limits for tax - deferred annuities can vary widely but are often higher than $5,000 in many cases.
  3. Pension: Pension contributions are typically determined by the employer and are not usually capped at $5,000 for individual contributions.
  4. IRA: For 2024, the contribution limit for an Individual Retirement Account (IRA) is $6,500 for individuals under 50 and $7,500 for those 50 and older. However, among the options given, it is the one that is most likely to have a contribution limit close to or at $5,000 in some scenarios.

Answer:

D. IRA