Question

Both nondeductible contributions to a traditional IRA and contributions to a Roth IRA are similar in the sense that neither provides a tax deduction at the date of contribution. Which of the two types would be most advantageous to taxpayers and why

Answer 1

Answer:

The query definition is mentioned in the clarification section following.

Explanation:

• Throughout the particular instance of Roth IRA, more stability and fewer constraints along with existing lower federal premiums allow Roth IRA a safer long-term taxpayer option. It is recommended that the taxpayer should do so. Employers can opt for something like a non-qualified retirement package if the company wishes to attract prospective workers with extra perks.
• It will include insurance as well as tax detention incentives along with extra payments. Non-qualified programs are more versatile which are used to accomplish specialized targets.