8
QuizMultiple Choice

Individual Retirement Plans — Quiz

Question 8 • Financial Math

Which advantage belongs to a Roth IRA?

Answer
A
no contribution limits
B
tax-free withdrawals in retirement
C
employer-matching contributions
D
tax-deductible contributions

Explanation

A Roth IRA is funded with after-tax contributions, but qualified withdrawals in retirement are tax-free. That makes “tax-free withdrawals in retirement” the advantage; contributions generally aren’t tax-deductible.

AI-written and checked against the verified answer.

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