Regarding Withdrawals from a Roth IRA

question 30

Multiple Choice

Regarding withdrawals from a Roth IRA:

• A)There are minimum withdrawal requirements for a Roth IRA.
• B)Roth IRA withdrawals are taxable if made after the five-tax-year period beginning with the first tax year in which a Roth contribution was made.
• C)Roth withdrawals are deemed to first come from contributions followed by earnings.
• D)Withdrawals that fail to meet the five-year holding period requirement are not taxable to the extent they do not exceed earnings.

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Definitions:

MVA

Market Value Added, a calculation that shows the difference between the market value of a company and the capital contributed by investors.

Straight-line Basis

A method of calculating depreciation and amortization by allocating an equal amount of expense over each period of the asset's useful life.

Taxable Income

Taxable income is the portion of an individual's or a company's income used to determine how much tax they owe to the government in a given tax year.

Net Fixed Assets

The value of a company's property, plant, and equipment minus depreciation, representing long-term investments in physical assets.