Question

Which of the following is a characteristic of a Roth IRA?

a. Contributions to a Roth IRA are tax deductible.
b.Earnings in a Roth IRA are not subject to income tax.
c.Withdrawals made after retirement are taxed.
d.Money cannot be withdrawn before age seventy-five.

Answer 1

A Roth IRA is a retirement account where contributions are made after taxes, earnings grow tax-free, and withdrawals made after retirement are generally tax-free.

Step-by-step explanation:

A Roth IRA is a type of retirement account that offers tax advantages. One characteristic of a Roth IRA is that contributions are made after taxes are paid. This means that you don't get a tax deduction for your contributions. However, the earnings in a Roth IRA grow tax-free. This means that you don't have to pay income tax on the money you earn in the account. Additionally, withdrawals made after retirement are generally tax-free as long as certain conditions are met.