The biggest advantage of the Roth IRA is that
A) income contributed to the retirement plan is tax-free.
B) withdrawals from the retirement plan are tax-free.
C) taxes on the income contributed to the retirement plan are deferred until the funds are withdrawn.
D) withdrawals from the retirement plan are tax-deferred until the individual reaches 59½ years of age.

Question

Quizplus · Accepted Answer

People who invest in a Roth IRA do not get the up-front deductions on their taxes offered by a traditional IRA. The biggest advantage lies in the provision that the earnings of the fund are tax-free when they are withdrawn.

The Biggest Advantage of the Roth IRA Is That