Series 7 practice questionmediumRetirement Plans 386
A 45-year-old customer contributes to a traditional IRA and meets the eligibility rules. The primary tax feature is that contributions may be deductible and earnings grow:
- Atax free if held 30 days
- Bfree of any IRS reporting
- Cas ordinary losses only
- Dtax deferred until withdrawn✓ Correct answer
Explanation
Why D — tax deferred until withdrawn
Traditional IRA investments grow tax deferred. Depending on income and plan participation, contributions may also be deductible.
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