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LA Times 401(k) kin Crossword Puzzle Answer from July 08, 2024
by Abisha
Updated Jul 08, 2024
401(k) kin LA Times Crossword Clue Answer
Let’s find the answers to 401(k) kin LA Times for the July 08, 2024 edition of LA Times crossword puzzle. Answer Contains 3 letters. Start with I and end with A, and the possible solutions are ING,ION,IRA.
Answer to the LA Times crossword clue 401(k) kin featured in the LA Times puzzle is IRA.
An IRA (Individual Retirement Account) is a type of retirement savings account that is similar to a 401(k) in several ways. Both IRA and 401(k) accounts allow individuals to save for retirement on a tax-advantaged basis. Contributions to traditional IRAs and 401(k)s are typically tax-deductible, meaning they reduce taxable income in the year they are made, while contributions to Roth IRAs and Roth 401(k)s are made with after-tax dollars but can grow tax-free and be withdrawn tax-free in retirement.
Understanding the similarities between an IRA and a 401(k) helps individuals plan for their retirement savings effectively. IRAs offer flexibility in investment choices and are not tied to employment, unlike 401(k) plans, which are offered by employers. Both IRA and 401(k) accounts have annual contribution limits set by the IRS, with catch-up contributions available for individuals age 50 and older.
Choosing between an IRA and a 401(k) often depends on factors such as employment status, income level, and retirement savings goals, with many individuals opting to contribute to both types of accounts to maximize tax benefits and retirement savings potential.
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