All of the options are true. A Roth IRA is funded with after-tax dollars, allows tax-free accrual of interest or dividends, permits the withdrawal of your contribution at any time, and provides for tax-free earnings if you hold the account for 5 years and withdraw after reaching 59 ¹/₂.

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A Roth IRA

Question 157

Multiple Choice

A Roth IRA

A) is funded with after tax dollars.
B) allows interest or dividends to accrue tax free.
C) permits you to withdraw your contribution at any time.
D) provides for tax-free earnings if you hold the account 5 years and are 59 ¹/₂ at withdrawal.
E) all of the above are true.

Correct Answer: