Even if you have opened and contributed to a traditional or Roth IRA in the past, you can convert it (under specified conditions) into the other type of IRA. Which of these types of conversions is by far the more common:

From traditional to Roth

From Roth to traditional

Flag this Question

Question 12

If you expect not to spend the contents of your IRA during your lifetime and would like to leave the money to your children, you should contribute primarily to a Roth IRA rather than a traditional IRA.

True

False

Flag this Question

Question 13

As a general rule, it is wise to contribute to a traditional IRA if you expect to be in a higher tax bracket when you retire than you are in now and contribute to a Roth IRA if you expect to be in a lower tax bracket when you retire than you are in now.

True

False

Flag this Question

Question 14

Imagine that your mother is 62 years old and planning to retire at 66. If she puts $6,000 into a Roth IRA at the age of 62 and it grows to $8,000 by the time she retires at 66, can she withdraw the full $8,000 without paying any taxes?

Yes

No

Flag this Question

Question 15

Suppose you contributed $5,000 per year to a ROTH IRA between the ages of 25 and 30. Your total contribution was $25,000, and your account is now worth $34,000. You are now 35 years old and would like to buy a house. How much of your IRA can you withdraw to make a down payment on the house without paying any taxes or penalties on the withdrawal?

$0

$10,000

$16,000

$25,000

$34,000