Question

Which of these is a personal retirement plan in which earnings are taxed at withdrawal? A. 401(k) B. Roth IRA C. traditional IRA

Answer 1

Answer:

Traditional IRA.

Step-by-step explanation:

A 401(k) is a retirement savings plan given by an employer. This plan lets the  employees save a portion of their paycheck before tax is deducted. Tax is not paid until the money is withdrawn from the account.

A traditional IRA is also a way to save for retirement. This also give tax advantages. Contributions to this plan may be fully or partially deductible. Usually the amounts in traditional IRA is not taxed until distributed.

Now, we have the meanings for both plans and both seem same. But as stated you have got 401 k wrong, you can go with traditional IRA.