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An individual owns a bicycle repair business as a sole proprietorship. He does not make a lot of money, but he does have $5,000 available for investment this year. The BEST recommendation for this individual
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An individual owns a bicycle repair business as a sole proprietorship. He does not make a lot of money, but he does have $5,000 available for investment this year. The BEST recommendation for this individual is to make a $5,000 contribution to a(n):

User Kheil
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1 Answer

3 votes

Answer:

Roth IRA

Step-by-step explanation:

The best recommendation for this individual would be to make a $5,000 contribution to a Roth IRA fund. A Roth IRA is an individual retirement account in the United States that offers tax-free growth and withdrawals in retirement at age 59½ or older. Since Roth IRA accounts have a annual contribution limit which varies between 5k to 6k a year, the individual will be able to max out this year's contribution with this single payment.

User ToATwork
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