Question

Francisco started a new job and wants to open a retirement account. He has heard about 401k and 403(b) accounts for retirement. His new job will only allow him to have a 403(b) account. What is the MOST likely reason for this? A. Francisco is a salesperson at a clothing shop. B. Francisco is a CEO of a Fortune 500 company. C. Francisco is a government employee. D. Francisco is an investment banker.

Answer 1

The MOST likely reason for Francisco's new job allowing him to have only a 403(b) retirement account is C. Francisco is a government employee.

Francisco, as a government employee, may be working in a public school.  Under section 501(c) of the IRS code, Francisco's organization is a nonprofit, which is tax-exempt.

Thus, the main reason that Francisco can open a 401(k) but a 403(b) retirement account  is because he is working in a 501(c) tax-exempt organization.

Read more about 403(b) retirement accounts at https://brainly.com/question/23705597

Answer 2

Francisco is a government employee.