If a Roth IRA Has Been in Place for More

question 122

True/False

If a Roth IRA has been in place for more than five years and you have reached age 591/2,or the earnings have been used for qualified educational expenses or first-time homebuyer expenses,earnings are not taxed or penalized at withdrawal.

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Definitions:

Financial Statements

Reports that summarize the financial performance, position, and cash flows of a business over a specific period.

Indirect Method

A way to prepare cash flow statements where net income is adjusted for non-cash expenses, changes in working capital, and non-operating cash flows to calculate cash flow from operating activities.

Operating Activities

The day-to-day functions of a business related to producing and selling its goods or services, which are reflected in its cash flow.

Investing Activity

Transactions and events that involve the purchase and/or sale of long-term assets and other investments, as shown in a company’s cash flow statement.