Series 7 practice questionmediumRetirement Plans 382
A 41-year-old investor wants tax-free qualified withdrawals in retirement. Which plan best fits?
- ATraditional IRA funded with pretax payroll deductions only
- BCorporate bond sinking fund
- CUGMA account
- DRoth IRA✓ Correct answer
Explanation
Why D — Roth IRA
Qualified Roth IRA withdrawals are tax free if the holding period and age or other qualifying conditions are met. That is the defining advantage of the Roth structure.
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