Roth IRAs are the only IRAs that have the potential to produce tax-free earnings.

Name: Roth IRAs are the only IRAs that have the potential to produce tax-free earnings.
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Question

Quizplus · Accepted Answer

Roth IRAs differ from traditional IRAs in that contributions are made with after-tax money. Therefore, when the funds are withdrawn, the earnings are not subject to income tax. This makes Roth IRAs the only type of IRA that offers the potential for tax-free earnings.

Roth IRAs Are the Only IRAs That Have the Potential