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Portfolios 204: Primer to Individual Retirement Accounts

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1.
You can generally have both a Roth and a traditional IRA.
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True. However, you will be penalized if you exceed the yearly contribution limit.
2.
A collection of valuable, vintage, handmade Elvis memorabilia is allowed as an IRA investment.
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False. Collectibles are not allowed as IRA investments.
3.
In a _______ individual retirement account, the money you contribute to it has already been taxed.
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Roth. Your contributions come out of your net pay, meaning they have already been taxed.
4.
Which of the following may not be used to hold a Roth IRA?
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A collection of rare stamps. Collectibles are not allowed as Roth IRA investments.
5.
The traditional individual retirement account has all of the following characteristics except for ______.
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Contributions that are never tax-deductible. They can be if certain conditions are met. It is the Roth IRA whose contributions are never deducted from taxable income.