In the Context of Building Wealth for Retirement, Identify a True

question 132

Multiple Choice

In the context of building wealth for retirement, identify a true statement about a Roth individual retirement account (IRA) .

• A) The contributions you make to a Roth IRA are tax deductible at the time you make them.
• B) Earnings on the contributions you make to a Roth IRA are taxable.
• C) You pay no 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:

Source-monitoring Error

A type of memory error where a person misidentifies the source of a memory, such as confusing whether an event was experienced or imagined.

Retrieval Cue

A stimulus that allows or aids the recall of information stored in memory.

Elaboration Encoding

A mnemonic device involving the addition of extra information to aid in the memory of something.

Spreading Activation

A method within cognitive science that explains how information is retrieved in the brain, suggesting that the activation of one concept triggers related concepts.