Frank Established a Roth IRA at Age 25 and Contributed

question 11

Multiple Choice

Frank established a Roth IRA at age 25 and contributed a total of $131,244 to it over 38 years. The account is now worth $376,000. How much of these funds can Frank withdraw tax-free?

• A) $0
• B) $131,244
• C) $244,756
• D) $376,000
• E) None of the above

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Definitions:

Medicare

A federal health insurance program in the United States primarily for people who are 65 or older, as well as for some younger people with disabilities or specific diseases.

United States Congress

is the bicameral legislature of the federal government of the United States, consisting of two houses: the Senate and the House of Representatives.

Health Insurance

A system of financial protection against medical expenses for individuals, where costs are covered by insurance contributions or premiums.

Adverse Outcomes

Negative results or effects that may occur as a consequence of an action, intervention, or condition.