What type of account is typically used for saving for retirement?

The option referring to a 401(k) account is the correct choice for saving for retirement because it is specifically designed as a retirement savings vehicle. A 401(k) allows employees to save a portion of their paycheck before taxes are taken out, which can then be invested in various assets like stocks, bonds, or mutual funds. The contributions can grow tax-deferred, meaning you won't owe taxes on the money until you withdraw it in retirement. Many employers also offer matching contributions to 401(k) accounts, which can significantly enhance retirement savings.

On the other hand, a checking account is primarily used for day-to-day transactions and doesn't typically offer significant interest or growth, making it unsuitable for long-term savings like retirement. A brokerage account allows individuals to invest in various assets but does not have the same tax advantages or structured saving mechanics as a 401(k). A PayPal account is used for online transactions and payments and is not designed for savings or investment purposes, particularly for retirement needs.