a retirement plan that lets you put aside pre - tax money in your own account (not an account through your…

a retirement plan that lets you put aside pre - tax money in your own account (not an account through your employer) is known as: a. a defined contribution plan b. a 401(k) plan c. a traditional ira d. a defined benefit plan

a retirement plan that lets you put aside pre - tax money in your own account (not an account through your employer) is known as: a. a defined contribution plan b. a 401(k) plan c. a traditional ira d. a defined benefit plan

Answer

Brief Explanations:

A traditional IRA allows individuals to contribute pre - tax money to their own retirement account (not through an employer). A defined - contribution plan is a broader category that includes employer - sponsored plans like 401(k)s. A 401(k) is an employer - sponsored retirement plan. A defined - benefit plan promises a specific benefit amount at retirement and is usually employer - sponsored.

Answer:

C. A traditional IRA