Which of the following is intended primarily to enhance a person's tax advantage and retirement income?

Question

A. U.S. Savings Bond
B. Growth Fund
C. Money market Fund
D. IRA

Answer 1

The answer is D. But to add a little bit of understanding:

A traditional IRA (Individual Retirement Account) allows you to contribute pre-tax dollars, grow the investment, and defer payment of taxes until withdrawal starts at retirement. This pre-supposes that your tax rate will be lower at retirement than it is now.

A Roth IRA allows you to contribute after-tax dollars, but you'll be able to withdraw later tax-free. The presumes - rightly so, I think -that tax rates are relatively low today and it'll be to your benefit to be able to withdraw tax-free later.

Answer 2

This feels like a homework question...
.. i would identify which is tax exempt until retirement.

i only see one of those which meets that req.