A Roth IRA allows an individual to accumulate investment earnings tax free and also pay no tax on their investment earnings when withdrawn provided the taxpayer follows the rules on this new account.

Question

Quizplus · Accepted Answer

A Roth IRA does allow tax-free accumulation of investment earnings and tax-free withdrawals, but certain rules must be followed, such as not withdrawing earnings before age 59.5 and having the account open for at least 5 years.

A Roth IRA Allows an Individual to Accumulate Investment Earnings