Delores had invested in an individual retirement account (IRA) over the 25 years of her service and then invested the money from the IRA in government securities. The contributions that Delores had made to the account were not tax deductible at the time they were made, but she did not have to pay taxes on the distribution she received from the IRA on retirement. In this scenario, Delores had invested in a _____.
A) traditional IRA
B) Roth IRA
C) SIMPLE IRA
D) SEP IRA

Question

Quizplus · Accepted Answer

Delores invested in a Roth IRA, where contributions are made with after-tax dollars, and qualified distributions, including earnings, are tax-free upon retirement.

Delores Had Invested in an Individual Retirement Account (IRA) Over