In the context of building wealth for retirement, identify a true statement about a Roth individual retirement account (IRA).
A) The contributions you make to a Roth IRA are tax deductible at the time you make them.
B) Earnings on the contributions you make to a Roth IRA are taxable.
C) You pay no taxes on the distributions you receive from a Roth IRA after you retire.
D) There is no limit on the amount that you can contribute each year to a Roth IRA.

Question

Quizplus · Accepted Answer

Distributions from a Roth IRA are tax-free in retirement, provided certain conditions are met, such as the account being open for at least five years and the account holder being at least 59½ years old.

In the Context of Building Wealth for Retirement, Identify a True