Question

Which of these retirement plans can be started by an employee, even if another plan is in existence?

a) 401(k) plan
b) Simplified Employee Pension (SEP) plan
c) Defined Benefit plan
d) Roth IRA

Answer 1

The Roth IRA can be started by an employee even if another retirement plan is in existence.

Step-by-step explanation:

The retirement plan that can be started by an employee even if another plan is in existence is the Roth IRA. Unlike other retirement plans, an employee can contribute to a Roth IRA regardless of whether they have a 401(k) plan, Simplified Employee Pension (SEP) plan, or Defined Benefit plan. A Roth IRA is an individual retirement account that allows employees to make after-tax contributions and enjoy tax-free growth on those contributions.