2
QuizMultiple Choice

Building a Smart Retirement Plan — Quiz

Question 2 • Personal Finance

What is a key feature of a Roth IRA?

Answer
A
no contribution limits
B
taxes are paid later
C
withdrawals are always taxed
D
contributions are made after taxes

Explanation

A key feature of a Roth IRA is that contributions are made with money that has already been taxed. If withdrawal rules are met, earnings can generally be withdrawn tax-free, so “taxes are paid later” and “withdrawals are always taxed” are not accurate descriptions.

AI-written and checked against the verified answer.

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