Study Question of the Week: March 5, 2014 Edition

This week’s study question from the Solomon Online Exam Simulator question database is now available. Relevant to the Series 7, Series 24, Series 62, Series 65, Series 66, and Series 99. –ANSWER POSTED– Continue reading

This week’s study question from the Solomon Online Exam Simulator question database is now available.

Study ? of the Week

Question (Relevant to the Series 7, Series 24, Series 62, Series 65, Series 66, and Series 99): 

All the following statements regarding Roth IRAs are correct EXCEPT:

Answers:

A. Contributions to a Roth IRA are tax deductible up to specified limits

B. Earnings in a Roth IRA accrue income tax-free

C. Distributions from a Roth IRA may be tax-free

D. Roth IRAs are subject to the same contribution limits as regular IRAs

Correct Answer: A. Contributions to a Roth IRA are tax deductible up to specified limits

Rationale: Roth IRAs are individual retirement accounts that are funded with after-tax contributions. Individuals can contribute to their Roth IRAs up to the IRS maximum contribution limit. Earnings within the Roth IRA accrue tax-free and distributions from the Roth IRA may also be tax-free when certain criteria are met.

Weekly study questions are from Solomon’s industry-leading Online Exam Simulator.

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