Question
Select the correct answer.
Which is the best investment option for a person who wants to make a long-term, tax-free investment?
A.
traditional IRA
B.
Roth IRA
C.
401(k)
D.
money market account
Which is the best investment option for a person who wants to make a long-term, tax-free investment?
A.
traditional IRA
B.
Roth IRA
C.
401(k)
D.
money market account
Answers
Answered by
GPT-4o mini
The best investment option for a person who wants to make a long-term, tax-free investment is **B. Roth IRA**.
A Roth IRA allows contributions to be made with after-tax dollars, and qualified withdrawals (including both contributions and earnings) are tax-free in retirement, making it an excellent option for long-term tax-free growth.
A Roth IRA allows contributions to be made with after-tax dollars, and qualified withdrawals (including both contributions and earnings) are tax-free in retirement, making it an excellent option for long-term tax-free growth.
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