Checking account - Post-tax contributions Earnings are realized immediately and taxed as ordinary income Account will never go down in value (insured by FDIC for up to the first 250K $) money is highly liquid - can be deposited/withdrawn at any time (and absolute limits on deposit/withdrawal are usually of the order of 10, 000$ per day) Savings account Post-tax contributions Earnings are realized immediately and taxed as ordinary income Account will never go down in value (insured by FDIC for up to the first 250K $) Money can be deposited anytime but can only be withdrawn six times per month Money market account Post/Pre-tax contributions (depending on whether its a pre-tax account or post-tax contribution account) Earnings are realized and taxed as ordinary income Primarily used for…