Answered

Contributions to Roth IRAs are
о
A. Paid with pre-tax dollars.
O
B. Always subject to a 6% tax penalty.
о C. Tax deductible.
O
D. Not tax deductible.



Answer :

GinnyAnswer

Final answer:

Roth IRAs are funded with after-tax dollars, offering tax-free returns and withdrawals. Contribution decisions depend on future tax rate predictions and income eligibility limits.


Explanation:

Roth IRAs are funded with after-tax dollars, and contributions are not tax deductible. The returns on investments within a Roth IRA are tax-free, and qualified withdrawals are also tax-free. Setting up a Roth IRA involves consideration of future tax rates and income limits for eligibility.


Learn more about Roth IRAs here:

https://brainly.com/question/34922853


Other Questions