Which of the following is/are true about a Roth IRA?
I. Contributions are tax deductible.
II. Withdrawals after retirement are not taxed.
III. You must begin withdrawals at age 70½.
IV. Employers match contributions.
V. They are only available to individuals earning less than $50,000,or households earning less than $90,000.

Question

Quizplus · Accepted Answer

Roth IRA contributions are made with after-tax dollars, meaning they are not tax-deductible, which eliminates I. Withdrawals after retirement (after age 59½ and the account has been open for at least 5 years) are not taxed, making II correct. There are no required minimum distributions for Roth IRAs during the owner's lifetime, eliminating III. Employers do not match contributions to Roth IRAs, which is typically a feature of employer-sponsored plans like 401(k)s, eliminating IV. The income limits for Roth IRA contributions are higher than those stated in V and are adjusted periodically for inflation, making V incorrect.

Which of the Following Is/are True About a Roth IRA