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Which of the following statements most accurately describes the tax treatment of contributions to and distributions from a Roth IRA? Contributions are made with pretax
Which of the following statements most accurately describes the tax treatment of contributions to and distributions from a Roth IRA?
- Contributions are made with pretax dollars.
- A withdrawal from the account will not be subject to tax if the account has been established for at least three years and the funds (up to $10,000) are being used for a first-time home purchase.
- Distributions are not taxable if they are attributable to disability and the account has been established for at least five years.
- If the account has been open for at least five years and the account owner is age 59, distributions are penalty free and income tax free.
| II, III, and IV |
| III and IV |
| I only |
| I, II, and III |
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