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Answered

Which of the following is an advantage of a traditional IRA?

A. Contributions are tax-deductible.
B. Employers can contribute.
C. Contributions are limited.
D. Disbursements are tax-free.



Answer :

GinnyAnswer

Final answer:

One advantage of a traditional IRA is that contributions are tax-deductible, providing a tax benefit for individuals.


Explanation:

Contributions are tax-deductible is an advantage of a traditional IRA. This allows individuals to direct pretax income towards investments that can grow tax-deferred. Unlike Roth IRAs, where contributions are made after taxes, traditional IRAs offer the benefit of tax-deductible contributions.


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