Question 20 What is a common feature shared by Roth IRAS and traditional 401(k)s? O Both accounts have required minimum distributions (RMDS) starting at age 72. O Contributions to both accounts are tax-deductible in the year they are made. O Both accounts allow for penalty-free withdrawals before age 59% for certain qualifying expenses. Both Roth IRAS and traditional 401(k)s have no income limits for eligibility.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Question 20 What is a common feature shared by Roth IRAS and traditional 401(k)s? O Both accounts have required minimum distributions (RMDS) starting at age 72. O Contributions to both accounts are tax-deductible in the year
they are made. O Both accounts allow for penalty-free withdrawals before age 59% for certain qualifying expenses. Both Roth IRAS and traditional 401(k)s have no income limits for eligibility.
Transcribed Image Text:Question 20 What is a common feature shared by Roth IRAS and traditional 401(k)s? O Both accounts have required minimum distributions (RMDS) starting at age 72. O Contributions to both accounts are tax-deductible in the year they are made. O Both accounts allow for penalty-free withdrawals before age 59% for certain qualifying expenses. Both Roth IRAS and traditional 401(k)s have no income limits for eligibility.
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