Asked by Deija Williams on Apr 29, 2024
Verified
IRAs have greater tax advantages that do 401(k) plans.
IRAs
Individual Retirement Accounts, which are tax-advantaged investing tools for individuals to earmark funds for retirement savings.
401(k) Plans
Retirement savings plans sponsored by an employer that allow employees to save and invest a portion of their paycheck before taxes are taken out.
- Learn the basic concepts behind deciding pay scales and the crucial role of appropriately rewarding staff.
Verified Answer
TM
Taylor ManningMay 02, 2024
Final Answer :
False
Explanation :
Both IRAs and 401(k) plans offer tax advantages, but the extent and nature of these advantages can vary based on the specific type of account (traditional or Roth), contribution limits, and individual circumstances. Neither inherently has greater tax advantages across all scenarios.
Learning Objectives
- Learn the basic concepts behind deciding pay scales and the crucial role of appropriately rewarding staff.