which statements are true regarding a traditional individual retirement account? choose three answers.\n□…

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

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

Answer

Answer:

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

Brief Explanations:

In a traditional IRA, individuals can contribute until retirement age. There are annual contribution limits set by the IRS. Contributions are tax - deductible, thus reducing taxable income. Employers don't create and match contributions (unlike 401(k)s), and early withdrawals usually incur penalties.