Which of the Following Is True About a Roth IRA

question 3

Multiple Choice

Which of the following is true about a Roth IRA?

• A) The amount invested is taxed and the gain is not taxed.
• B) The amount invested and the gain are both taxed.
• C) Neither the investment nor the gain are taxed.
• D) The amount invested is not taxed and the gain is taxed.

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Definitions:

Specific Goals

Goals that are clearly defined, measurable, achievable, relevant, and time-bound, guiding individuals or organizations towards desired outcomes.

Expectancy Theory

A motivational theory that suggests an individual's performance is based on their expectations of the outcome and the value they place on that outcome.

Multiplier Effect

A phenomenon where a small change in a particular variable leads to larger changes in related variables, amplifying the original effect.

Goal-setting

The process of identifying specific, measurable, achievable, relevant, and time-bound objectives.