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1.
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.
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.
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.
4.
Which of the following may not be used to hold a Roth IRA?
A collection of rare stamps. Collectibles are not allowed as Roth IRA investments.
5.
You are required to take Roth IRA withdrawals _______.
Not at all. You are not required to take distributions from a Roth IRA during your lifetime.