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Multiple Choice
Roth IRA, 401(k), 403(b), 457, and Simplified Employee Pension are all examples of ______________.
A
retirement investment accounts
B
government bonds
C
taxable brokerage accounts
D
short-term trading accounts
Verified step by step guidance
1
Step 1: Begin by understanding the concept of retirement investment accounts. These are accounts designed to help individuals save for retirement, often offering tax advantages to encourage long-term savings.
Step 2: Review the specific types of accounts mentioned in the problem: Roth IRA, 401(k), 403(b), 457, and Simplified Employee Pension. Each of these is a type of retirement account with unique features and tax benefits.
Step 3: Compare the other options provided in the question: government bonds, taxable brokerage accounts, and short-term trading accounts. These are not specifically designed for retirement savings and do not offer the same tax advantages as retirement accounts.
Step 4: Eliminate incorrect options by analyzing their purpose. For example, government bonds are debt securities issued by the government, taxable brokerage accounts are general investment accounts, and short-term trading accounts focus on frequent buying and selling of securities.
Step 5: Conclude that Roth IRA, 401(k), 403(b), 457, and Simplified Employee Pension are all examples of retirement investment accounts, as they are specifically designed to help individuals save for retirement with tax benefits.