Answers Third Block Dixon Basic Ag Science Intro. to Career Competencies Spring 26 Topic TestQuestion 22

22

QuizMultiple Choice

Topic Test

Question 22 • Third Block Dixon, Basic Ag Science, Intro. to Career Competencies Spring 26

Individual Retirement Accounts (IRAs) are very popular because ______.

Answer

A

They include a large variety of stock options

B

They are not taxed until retirement

C

They have very high rates of return

D

They have unlimited contribution potential

Explanation

Traditional IRAs are popular because taxes on investment earnings are generally deferred until money is withdrawn, often during retirement. This lets the account grow without annual taxes on those earnings. IRAs do not guarantee high returns or allow unlimited contributions.

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