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1.
IRA funds that are rolled over must be done so within 90 days.
False. They must be rolled over within 60 days. If they are not, they will lose their tax deferral.
2.
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.
3.
If you are single and you have a traditional IRA account, you are not allowed to have a Roth IRA as well.
False. You may indeed have both, as long as the total contributions each year do not exceed the maximum allowed.
4.
Your ability to contribute to a Roth IRA is affected by how much money you earn.
True. After you have earned a certain amount, your ability to contribute to a Roth IRA becomes limited and eventually stops. The limit varies based on your tax filing status.
5.
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.