How Is the Money Taxed That Is Withdrawn from a Roth

question 59

Multiple Choice

How is the money taxed that is withdrawn from a Roth IRA during your retirement?

• A) It's taxed as ordinary income.
• B) It's tax-deferred and not taxed in the year that it is withdrawn.
• C) It's taxed as capital gains.
• D) It's not taxed.

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Definitions:

Contingency Contract

A behavioral strategy in which two parties agree on a specific change that will occur when certain conditions are met.

Group Extinction

The phenomenon when a species, cultural group, or language ceases to exist as a distinct entity.

Token Economy

A behavior modification system that utilizes tokens as rewards for desirable behaviors, which can later be exchanged for privileges or items.

Negative Reinforcement

Negative Reinforcement is a concept in behaviorism where the removal of an adverse stimulus following a desired behavior increases the likelihood of the behavior being repeated.