SIE practice questioneasyRetirement Accounts – Contributions
Which statement is true regarding contributions to a Roth IRA?
- AContributions are limited to age 50+
- BContributions are tax-deductible
- CContributions are made by employers only
- DContributions are made with after-tax dollars✓ Correct answer
Explanation
Why D — Contributions are made with after-tax dollars
Roth IRA contributions are always with after-tax dollars. They are not tax-deductible and can be made by individuals of any eligible age up to the annual limit.
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