In the Context of Building Wealth for Retirement, Which of the Following

question 114

Multiple Choice

In the context of building wealth for retirement, which of the following statements is true of a Roth individual retirement account (IRA) ?

• A) The contributions you make to a Roth IRA are not tax deductible at the time you make them.
• B) Earnings on the contributions you make to a Roth IRA are taxable.
• C) You need to pay taxes on the distributions you receive from a Roth IRA after you retire.
• D) There is no limit on the amount that you can contribute each year to a Roth IRA.

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Definitions:

Three-Fifths Compromise

A constitutional agreement that each slave would be counted as three-fifths of a person for the purposes of taxation and representation.

Constitution

is the supreme law of a country, outlining the framework for its governance and the rights and duties of its citizens.

Shays's Rebellion

An armed uprising in Western Massachusetts and Worcester in response to high debt and tax burdens in 1786 and 1787.

Massachusetts

Massachusetts is a U.S. state in New England known for its significant historical landmarks, higher education institutions, and influential role in American history.