25
QuizMultiple Choice

Retirement — Test

Question 25 • Financial Math

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

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