7
lesson pretestMultiple Choice

Pretest

Question 7 • Mathematics for Data and Financial Literacy

Which advantage belongs to a Roth IRA?

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

Previous
Next