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Correct Answer: i and iii
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* the correct answer to the question regarding the type of retirement plans established for employees of nonprofit and public organizations is "i and iii", which refers to tax-sheltered annuity (tsa) and tax-deferred account (tda).
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* a tax-sheltered annuity, also known as a 403(b) plan, is specifically designed for employees of certain tax-exempt organizations, such as schools, hospitals, and other nonprofit entities. this type of plan allows employees to make pre-tax contributions directly from their salary, which lowers their taxable income. the funds in the account then grow tax-deferred until they are withdrawn, typically after retirement, at which point the withdrawals are taxed as ordinary income.
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* similarly, a tax-deferred account is a broad category that includes various types of retirement accounts where money grows tax-free until it is withdrawn. this category can include 403(b) plans among others, but in the context of the question, it highlights the general benefit of deferred taxation, which is common in many retirement plans available to nonprofit and public employees.
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* on the other hand, a keogh plan (option ii) is a retirement plan for self-employed individuals and their employees, not typically used by nonprofit or public sector employees. therefore, it is not the correct choice for this specific question.
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* the roth ira (option iv), while available to anyone with earned income including employees of nonprofit organizations, is not specifically established for them as a group. roth iras are individual retirement accounts where contributions are made with after-tax dollars, and withdrawals during retirement are tax-free.
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* therefore, the most appropriate and specific answers for the types of retirement plans established predominantly for employees of nonprofit and public organizations are tax-sheltered annuities and tax-deferred accounts, making "i and iii" the correct choices.
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