Which of the Following Is a Significant Advantage of a Roth

question 50

Multiple Choice

Which of the following is a significant advantage of a Roth IRA?

• A) Investments held in the account accumulate earnings on a tax-deferred basis.
• B) Money pulled from the account is tax-free if certain conditions are met.
• C) Investments held in the account accumulate earnings on a tax-deferred basis and money pulled from the account is tax-free if certain conditions are met.
• D) None of these answer choices are correct.

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Definitions:

Independent Directors

Members of a company's board of directors who do not have a material or pecuniary relationship with the company or related persons, ensuring unbiased governance and decision-making.

CFO

Chief Financial Officer, a senior executive responsible for managing the financial actions of a company.

Auditing Firms

Companies specializing in examining and evaluating the accuracy of financial records and statements of a corporation or entity.

Financial Assets

Assets that derive value from a contractual promise or ownership right, including stocks, bonds, derivatives, and bank balances.