In the context of building wealth for retirement, which of the following statements is true of a Roth individual retirement account (IRA)?
A) The contributions you make to a Roth IRA are not tax deductible at the time you make them.
B) Earnings on the contributions you make to a Roth IRA are taxable.
C) You need to pay 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

Contributions to a Roth IRA are made with after-tax dollars, meaning they are not tax deductible at the time of contribution. Earnings grow tax-free, and qualified distributions are also tax-free. There are annual contribution limits.

In the Context of Building Wealth for Retirement, Which of the Following