One Important Difference Between a Roth IRA and a Traditional

question 104

Multiple Choice

One important difference between a Roth IRA and a traditional IRA is that

• A)distributions from the Roth IRA are tax-free.
• B)accumulations in the traditional IRA are never taxed.
• C)contributions to the Roth IRA are tax deductible.
• D)contributions to the traditional IRA are always out of after-tax earnings.

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Definitions:

Will to Develop

The determination and commitment shown by individuals or societies to improve economic conditions, infrastructure, and standards of living through innovation and investment.

Economic Growth

An increase in a country’s ability to produce goods and services, reflected in an increase in real GDP over time.

Human Capital Investment

The process of increasing the value of a workforce through education, training, and health improvements.

Technologies

The application of scientific knowledge for practical purposes, especially in industry and everyday life.