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In Business / College | 2025-07-06

Bruno has decided to choose a Roth IRA for his retirement plan. Which of the following are features of this plan?

Select all that apply.
A. will pay tax on withdraws in retirement
B. contributions can be withdrawn penalty free after five years
C. contributions are deductible at tax time for the year contributed
D. assets left to heirs are tax free

Asked by 29s2vbcwd8

Answer (2)

Bruno's Roth IRA features include the ability to withdraw contributions penalty-free after five years and tax-free inheritance for heirs. Contributions to a Roth IRA are not tax-deductible, and withdrawals in retirement are also not taxed. Therefore, the correct options are B and D. ;

Answered by GinnyAnswer | 2025-07-06

Bruno's Roth IRA allows him to withdraw contributions penalty-free after five years and provides tax-free inheritance for his heirs. However, he will not pay taxes on withdrawals since contributions were made with after-tax dollars, and contributions are not tax-deductible. The correct options are B and D.
;

Answered by Anonymous | 2025-07-26

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