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1.
The Roth IRA features tax-free distributions.
True. In return, the contributions to it must have been taxed.
2.
Liquidating shares in an investment can be part of a withdrawal plan.
True. It may be specified beforehand as a way of periodically withdrawing money from the investment.
3.
Qualified retirement plans are those that receive special tax benefits.
True. That is what "qualified" means.
4.
Which of the following is not a tax shelter?
None of the above. All of them can grow tax-free.
5.
Which annuity's payments change according to its investment performance?
Variable annuity. Although the payments from the other choices may vary, those variations would have to be variable annuities in order to change according to investment performance.
6.
What is the general name for an investment that lets you legally avoid many taxes?
Tax shelter. Annuities and 403(b) plans can be tax shelters, and usually are.