ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Workers and their spouses do not need their employers’ help to save in tax-favored retirement accounts. They may open individual retirement accounts, which mostly come in two forms: traditional IRAs and Roth IRAs.

Detailed explanation-2: -SIMPLE IRA, which stands for Savings Incentive Match Plan for Employees Individual Retirement Accounts, is employer-sponsored. This means it is offered to employees through a business. These types of retirement plans are made specifically for small businesses with 100 or fewer employees.

Detailed explanation-3: -With a Roth IRA, you contribute after-tax dollars, your money grows tax-free, and you can generally make tax-and penalty-free withdrawals after age 59½. With a Traditional IRA, you contribute pre-or after-tax dollars, your money grows tax-deferred, and withdrawals are taxed as current income after age 59½.

Detailed explanation-4: -Besides brokerage accounts, other non-retirement account types exist. Two popular options include health savings accounts (HSAs) and education accounts, such as 529 plans.