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Retirement Intermediate: The Roth IRA

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1.
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.
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Five. Five years is the minimum length of time.
2.
IRA funds that are rolled over must be done so within 90 days.
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False. They must be rolled over within 60 days. If they are not, they will lose their tax deferral.
3.
The contribution limit to a Roth IRA is _______ that of the traditional IRA.
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Equal to. The two IRAs share the same contribution limit.
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.
For which of the following situations would the 10 percent early withdrawal penalty apply to Roth IRA earnings withdrawals?
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Purchase of a new car. The Roth IRA does not allow this.