Which one of these statements correctly applies to a Roth IRA?
A)Earnings on the account are tax-free after five years.
B)Annual contributions may exceed $7,000.
C)Deposits must be in federally-insured accounts.
D)Funds are only to be used for educational expenses.
E)Only self-employed workers can contribute to a Roth IRA.

Question

Quizplus · Accepted Answer

Earnings in a Roth IRA are indeed tax-free after five years, provided the account holder meets certain conditions, such as being over 59½ years old or using the funds for a first-time home purchase.

Which One of These Statements Correctly Applies to a Roth