7)+Retirement+Pension

7) As an incentive to save for retirement the USA offers tax free savings - these options allow to invest some of your salary and then the government will only tax your salary. AFTER you have set some aside for retirement Retirement: Pension- is a guaranteed retirement fund, paid for by employer. Some of the most famous options are the 401k is set up by an employer, limits your choices of retirement options, non tax and can be used as a collateral. IRA (Indivivual Retirement Accounts) is set up on your own and you have unlimied choices of retirement options. The 401k and the IRA are not guaranteed.

What is the difference between IRA and the 401k? a) both have guaranteed retirement fund b) limited choices / umlimited choices c) non tax / tax d) indivivual set up