Qualifying distributions from traditional IRAs are nontaxable while qualifying distributions from Roth IRAs are fully taxable as ordinary income.

Name: Qualifying distributions from traditional IRAs are nontaxable while qualifying distributions from Roth IRAs are fully taxable as ordinary income.
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Question

Quizplus · Accepted Answer

The statement is false. Qualifying distributions from Roth IRAs are actually tax-free because the contributions to the account were made with after-tax dollars.

Qualifying Distributions from Traditional IRAs Are Nontaxable While Qualifying Distributions