Series 7 - General Securities Representative Exam
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For a Roth IRA, which of the following is TRUE?
They allow for tax to be paid upfront and distributions in retirement can be tax free
A
People with any income amounts can contribute to a Roth IRA
B
Required Minimum Distributions are needed, just like in a Traditional IRA
C
Roth IRAs require RMDs and taxes are paid upon taking the distributions
D
Explanations
There are income limits associate with Roth IRAs. Taxes are paid upfront and there are no RMDs required