22
QuizMultiple Choice

Retirement Planning — Test

Question 22 • Advanced Financial Algebra

Which retirement plan would allow Frieda to contribute the highest amount given their income and expenses?

Answer
A
traditional IRA; 6 dollars comma 500
B
SEP IRA; 12 dollars comma 000
C
SIMPLE IRA; 14 dollars comma 000
D
Roth IRA; 6 dollars comma 500

Explanation

Compare the listed contribution amounts: a Roth IRA allows $6,500, a SIMPLE IRA $14,000, a traditional IRA $6,500, and a SEP IRA $12,000. The SIMPLE IRA has the highest amount, at $14,000.

AI-written and checked against the verified answer.

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