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Juanita Mariposa is considering the possibility of using a Roth IRA to fund her retirement. Explain the following about Roth IRAs: Do Roth IRA contributions
- Juanita Mariposa is considering the possibility of using a Roth IRA to fund her retirement. Explain the following about Roth IRAs:
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- Do Roth IRA contributions receive favorable tax treatment in the year that they are made? If so, describe it.
- How is income on Roth IRAs taxed during the accumulation period?
- When is the earliest that Juanita can begin liquidating her Roth IRA without incurring a penalty?
- Will Juanita face a penalty if she does not withdraw funds from her Roth IRA during her lifetime?
- Explain the income tax treatment on Roth IRA distributions if Juanita withdraws funds from her IRA when she reaches age 70.
- Do Roth IRA contributions receive favorable tax treatment in the year that they are made? If so, describe it.
- How is income on Roth IRAs taxed during the accumulation period?
- When is the earliest that Juanita can begin liquidating her Roth IRA without incurring a penalty?
- Will Juanita face a penalty if she does not withdraw funds from her Roth IRA during her lifetime?
- Explain the income tax treatment on Roth IRA distributions if Juanita withdraws funds from her IRA when she reaches age 70.
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