Evan works for an employer that does not provide a retirement plan as a benefit. He...
Evan works for an employer that does not provide a retirement plan as a benefit. He earns $175,000 per year. He plans to fund his own retirement account through his local bank. Which of the following would BEST suit Evan?
a) A Roth IRA
b) A traditional IRA
c) A taxable account
Homework Answers
If the employer is not contributing and an individual needs to fund his own retirement, then the taxable accounts are the best way to fund for retirement.
Unlike individual retirements accounts, a taxable account is not subject to early withdrawal penalties and it does not limit the annual contributions too. Plus, the accounts are available to high earners, who may be barred from contributing to a Roth IRA.
So, the correct option is option C.
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