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An individual has been contributing to a retirement account after taxes are taken out of his paycheck. His financial advisor told him that he will be allowed to make contributions after age 70½. The account owner does not have to pay taxes on the growth of his account. What type of retirement account is it?

Respuesta :

Answer:

The correct answer is B) Roth IRA.

Explanation:

Roth IRA accounts are an exceptionally flexible savings option that offers the potential for deferred tax earnings and tax-free withdrawals.

  • Pay taxes when you contribute and, in return, you can make withdrawals (qualified with tax exemption) of potential earnings for your contributions.
  • Make withdrawals when you're ready and without having to meet minimum distribution requirements.
  • Keep contributing for as long as you want even after reaching retirement age.
  • Leave your heirs property without federal income taxes.

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