6D

Who of the following may establish a ROTH IRA?

Nelda who is still in college and has a part-time job as a sales clerk.

A ROTH IRA can be established at:

an investment company, a bank, a credit union (all of the above)

The cost of going without an emergency fund can be:

catastrophic

ROTH IRA's were created by:

congress

Which of the following statements best describes the concept of tax-deferred growth?

earnings within an account are not taxed as income until the earnings are withdrawn from the account, which could be many years after the earnings were first credited to the account.

Which of the following statements is true?

funds in roth ira can be FDIC insured, contributions made to roth IRA grow tax deferred, not everyone can take advantage of roth ira's (all of the above)

All of the following are true of traditional IRA's except

good alternatives to hold emergency funds

ROTH IRA accounts are unique because:

investment earnings receive unique tax treatment

Lannie funded her Roth IRA yesterday. Unfortunately, today she had an unexpected financial emergency. When can she take out her contribution to the IRA without a penalty?

today

A qualified distribution for a ROTH IRA can take place:

when you reach 59 1/2 years old and the ROTH IRA account has been open for 5 years

You can make tax-free withdrawals from ROTH IRA's:

when you withdraw your principal

James established a Roth IRA and funded it with $5,500. By the next year, the Roth is valued at $7,230. Yesterday, James found out emergency car repairs will cost him $3,000. How much can James withdraw tax-free and penalty-free?

5500

At which type of firms can you establish a ROTH IRA

mutual fund companies, banks, credit unions (all of the above)

Traditional IRA's provide for:

taxable distributions

All of the following are true about ROTH IRA's except

contributions to roth ira's are made with pre-tax dollars