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Retirement Intermediate: The Roth IRA

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1.
You are required to take Roth IRA withdrawals _______.
Choose wisely. There is only one correct answer.
Not at all. You are not required to take distributions from a Roth IRA during your lifetime.
2.
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.
3.
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.
4.
If you are single and you have a traditional IRA account, you are not allowed to have a Roth IRA as well.
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False. You may indeed have both, as long as the total contributions each year do not exceed the maximum allowed.
5.
For which of the following situations would the 10 percent early withdrawal penalty apply to Roth IRA earnings withdrawals?
Choose wisely. There is only one correct answer.
Purchase of a new car. The Roth IRA does not allow this.