Option D is correct.
If an employer does not offer a retirement plan, then traditional IRA and Roth IRA might be another way to save for retirement.
Further Explanation:
A retirement plan is a plan in which an individual gets the lump sum amount of money after providing a specific number of services to the company. Sometimes, the employer does not responsible for retirement plans to their employees. In that case, the employee can take benefit from the traditional IRA and Roth IRA for save the money for retirement.
Justification for the correct and incorrect answer:
A.
Traditional IRA: This option is incorrect.
Traditional IRA refers to the type of individual retirement account in that an employee can save his income for future use at the time of retirement. The employee opts for this account when the tax rate is lower at the time of retirement. This is not only the correct option.
B.
Roth IRA: This option is incorrect.
Roth IRA refers to a type of individual retirement account in which the employee can save his income for future use at the time of retirement. The employee opts for this account when the tax rate is high at the time of retirement. This is not only the correct option.
C.
401k plan: This option is incorrect.
401k plan is a type of retirement account that has been opened by the employers. This option is incorrect asthe employer does not offer a retirement plan.
D.
Both A and B:This option is correct.
As both options A and B are correct, so this is the correct option.
Learn more:
1. Learn more about retirement
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2. Learn more about life insurance
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3. Learn more about negotiating the plan
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Answer details:
Grade: Middle School
Subject: Taxation
Chapter: Retirement plan
Keywords:An employer, does not offer, retirement plan, might, another, way, to save, traditional IRA, Roth IRA, 401k plan, individual retirement account, lump sum, amount of money.
