Which One of These Statements Correctly Applies to a Roth

question 77

Multiple Choice

Which one of these statements correctly applies to a Roth IRA?

• A) Earnings on the account are tax-free after five years.
• B) Annual contributions may exceed $2,000.
• C) Deposits must be in federally-insured accounts.
• D) Funds are only to be used for educational expenses.
• E) Only self-employed workers can contribute to a Roth IRA.

---

Definitions:

Well-developed Soil

Soil that has undergone extensive formation processes, resulting in distinct layers and rich nutrient content.

Lava Flow

The movement of lava as it pours out and spreads over the land following a volcanic eruption.

Angular Unconformity

An unconformity (ancient erosion surface) in which the older, underlying strata dip more steeply or at a different angle than the younger, overlying strata.

Landscape Surface

The visible top layer of the earth's crust, including its physical features such as mountains, valleys, and plains.