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An individual works in a small manufacturing business with fewer than 100 employees. The company does not offer a retirement plan. This individual has $5,000 of discretionary funds that she wishes to put away for retirement. The BEST recommendation for this individual is to make a $5,000 contribution to a(n):_______

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eooyibo123

Answer:

Traditional IRA

Explanation:

Traditional IRA is an individual retirement account that is held at a custodian institution such as a bank. The funds can be invested in various assets such as certificate of deposit, stocks and mutual funds to generate interest.

It is simpler to enroll with than the Roth IRA and the only requirement is the fund to be invested. Transactions in the account are not subject to taxation. Taxes only apply at withdrawal.

The traditional IRA will be the best option for this person because of the ease of enrollment and freedom from taxes on transactions.

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