Series 7 practice questionmediumRetirement Plans 407
A 66-year-old investor wants tax-free qualified withdrawals in retirement. Which plan best fits?
- ARoth IRA✓ Correct answer
- BTraditional IRA funded with pretax payroll deductions only
- CCorporate bond sinking fund
- DUGMA account
Explanation
Why A — 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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