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1.
Which of the following may fund a Roth IRA?
A bond that does not pay periodic interest. This is called a zero coupon bond, and it is allowed as an IRA investment. The others are not.
2.
The contribution limit to a Roth IRA is _______ that of the traditional IRA.
Equal to. The two IRAs share the same contribution limit.
3.
Steve just recently rolled his Roth IRA from his savings account to a modestly performing bond mutual fund. But now he has discovered what an excellent performer the "Internet Sky's-the-Limit Fund" is. He may roll his IRA into that fund this very week.
False. He may do a rollover only once per year, and that applies to all of his IRAs together.
4.
Two criteria must be met for withdrawals of earnings from a Roth IRA to be tax-free: the individual must be at least 59½, and the funds must have been in the account for at least _______ years.
Five. Five years is the minimum length of time.
5.
The party that holds funds you contribute to your IRA is called the collection agent.