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529 plans, Roth IRA’s, Coverdell Education Savings Accounts are all examples of: a. individual retirement accounts...

529 plans, Roth IRA’s, Coverdell Education Savings Accounts are all examples of:

a. individual retirement accounts

b. identical retirement averages

c. employer retirement inducements

d. tax deferred accounts

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Answer #1

a) individual retirement accounts (IRA)

529 plans encourages saving up for college or graduation expenses of a beneficiary and it is a lot like an educational IRA, with some key differences

Roth IRAs offers tax free growth of investments and tax free withdrawals on retirement, provided certain conditions are met.

Coverdell Education Savings Accounts is a typical example of an educational IRA which is a tax advantaged investment for higher education savings.

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