Which of the Following Statements Regarding a Roth IRA Is

question 87

Multiple Choice

Which of the following statements regarding a Roth IRA is false?

• A)Contributions to a Roth IRA are nondeductible.
• B)A Roth IRA is tax exempt.
• C)Individuals of any age can make tax-exempt withdrawals from a Roth IRA.
• D)High-income individuals are not allowed to contribute directly to a Roth IRA.

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Definitions:

Age of 21

The age at which an individual is considered legally competent to engage in certain contracts and responsibilities in many jurisdictions.

Minor

A person under the legal age of adulthood, which varies by country, often considered to be under 18 years old.

Disaffirmance

Refers to the legal right to renounce or void a contract or agreement, particularly used in cases involving minors or instances of fraud.

Twenty-First Birthday

A milestone marking a person's legal transition into full adulthood in many jurisdictions, often associated with gaining the legal right to consume alcohol.