Roth IRAs differ from traditional IRAs in what way?
A) An employee is allowed to contribute more annually to a traditional IRA than to a Roth IRA.
B) An employee is allowed to contribute more annually to a Roth IRA than to a traditional IRA.
C) Traditional IRAs are restricted to people with adjusted gross incomes of less that $120,000 as a single person or $177,000 for married people filing joint returns. Roth IRAs are not restricted in this way.
D) Roth IRAs are restricted to people with adjusted gross incomes of less than $120,000 as a single person or $177,000 for married people filing joint returns. Traditional IRAs are not restricted in this way.

Question

Quizplus · Accepted Answer

Roth IRAs have income limits for eligibility, meaning if you earn above a certain amount, you cannot contribute to a Roth IRA. Traditional IRAs do not have these income limits for contributions, although there are limits for tax-deductibility based on income and participation in employer-sponsored plans.

Roth IRAs Differ from Traditional IRAs in What Way