Why are Individual Retirement Accounts (IRAs) very popular? a. They include a large variety of stock options b. They are not taxed until retirement c. They have very high rates of return. d. They have unlimited contribution potential.

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19-08-2016
Social Studies

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Why are Individual Retirement Accounts (IRAs) very popular? a. They include a large variety of stock options b. They are not taxed until retirement c. They have very high rates of return. d. They have unlimited contribution potential.

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Kalahira Kalahira · Answer 1 · 2017-08-28T22:11:27+02:00

"B. They are not taxed until retirement.This makes IRA popular because the earnings from the account can continue to grow upon itself without the tax burden taking away some of the gains. With a traditional IRA you do not have to pay taxes on the money you put in until you withdraw from the account in retirement. With a Roth IRA you put in money that has already been taxed so when you withdraw money in retirement you do not have to pay taxes."