Which of the Following Are Characteristics of a Roth IRA

question 40

Multiple Choice

Which of the following are characteristics of a Roth IRA?

• A)Most distributions made before age 59½ are subject to a 10 percent penalty tax.
• B)There are no minimum distributions required for a Roth IRA.
• C)Neither is a characteristic.
• D)Both are characteristics.

---

Definitions:

Variable Cost

Outlays that rise and fall with the quantity of production or sales activities, encompassing costs such as materials and labor.

Fixed Costs

Costs that do not change with the level of production or business activity, such as rent, salaries, and loan payments.

Estimated Sales Price

The anticipated amount for which a product or asset would sell in the current market.

Discounted Payback Period

The time it takes for the cash flows from an investment to equal the initial cost of the investment, accounting for the time value of money.