Question

Jeremiah Brown has been making contributions into an individual retirement account for his retirement. His contributions are not tax deductible but his earnings accumulate tax free. What type of individual retirement account does he have?
A. 401(k)
B. Coverdell Education Savings Account
C. Roth IRA
D. Spousal IRA E. Traditional IRA

Answer 1

Answer: Jeremiah Brown has a Roth IRA individual retirement account.

Roth IRA is a retirement account that promotes to salvage by getting a tax welfare. Whereas a conventional IRA, what we bestow to a Roth IRA are not tax-deductible. These  investment earnings increase tax-free.

Therefore the correct option is (c)