Contributions to a Roth IRA: I.May be rolled-over from a regular IRA in a nontaxable transaction. II.May be tax deductible. III.Are not taxed when withdrawn if they have been in an established account for at least five years and the taxpayer is at least 59¹/₂ before withdrawals are made. A)Only statement I is correct. B)Only statement II is correct. C)Only statement III is correct. D)Statements I, II, and III are correct.

Question

Quizplus · Accepted Answer

Contributions to a Roth IRA are not tax-deductible, but they are allowed to grow tax-free. Withdrawals are also tax-free if they meet certain conditions, including the account being established for at least five years and the taxpayer being at least 59 1/2 years old. Rollovers from a regular IRA to a Roth IRA can be done, but taxes must be paid on the amount being rolled over at the time of conversion. Therefore, only statement III is correct.