For workers who qualify, the earnings from income invested in a traditional IRA are
A) not taxed until the funds are withdrawn.
B) never taxed.
C) taxed at the time they are earned, but at the lowest individual rate.
D) taxed both at the time the money is earned and at the time the earnings are withdrawn.

Question

Quizplus · Accepted Answer

Neither the money invested nor the earnings of an IRA are taxable for qualified employees until the funds are withdrawn. Part of the tax advantage is that when workers retire, they will likely then be taxed at a lower rate.

For Workers Who Qualify, the Earnings from Income Invested in a Traditional