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Retirement Intermediate: The Roth IRA

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1.
If you are single and you have a traditional IRA account, you are not allowed to have a Roth IRA as well.
Choose wisely. There is only one correct answer.
False. You may indeed have both, as long as the total contributions each year do not exceed the maximum allowed.
2.
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.
3.
The party that holds funds you contribute to your IRA is called the collection agent.
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False. It is called the custodian.
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.
Choose wisely. There is only one correct answer.
Five. Five years is the minimum length of time.
5.
IRA funds that are rolled over must be done so within 90 days.
Choose wisely. There is only one correct answer.
False. They must be rolled over within 60 days. If they are not, they will lose their tax deferral.