Thinking Mathematically (6th Edition)

Published by Pearson
ISBN 10: 0321867327
ISBN 13: 978-0-32186-732-2

Chapter 8 - Personal Finance - 8.5 Annuities, Methods of Saving, and Investments - Exercise Set 8.5: 53

Answer

The statement does not make sense.

Work Step by Step

The statement does not make sense. A Roth IRA is not the same as a traditional IRA. With a Roth IRA, you pay taxes on the money you deposit, but you can withdraw your earnings tax-free beginning when you are 59.5 years old. (However, you have to pay taxes on the earnings up-front before they are deposited in the Roth IRA.)
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