Question

Mike is saving his emergency funds in an IRA account. Is his strategy a good one? Select the best answer from the choices provided.

A. Yes, because IRAs have tax advantages over regular bank accounts.
B. Yes, because IRAs usually earn more than savings accounts.
C. No, because only employers can contribute to IRA accounts.
D. No, because some funds cannot be withdrawn from IRA accounts without paying penalties.

Answer 1

The answer to your question is:

- A. Yes, because IRAs have tax advantages over regular bank accounts.