12.6 Traditional vs Roth IRA

With this IRA, you pay taxes when you deposit money into the account.

• Traditional

• Roth

With this IRA, you pay taxes when you withdrawal money from the account.

• Traditional

• Roth

at what age must you keep your money in the IRA and if you take it out before this age, you will have to pay a penalty.

• 59 1/2

• 69 1/2

• 72

• 62 1/2

at what age do you have to start taking out the Required Minimum Distribution or you will face a penalty.

• 59 1/2

• 69 1/2

• 72

• 62

How much of a penalty will you face if you take money out of your IRA early?

• 10%

• 50%

• 20%

• 40%

• 15%

How much of a penalty will you face if you don't take out the Required Minimum Distribution from your IRA?

• 10%

• 50%

• 20%

• 40%

• 15%

What is the most money you can put into an IRA in one year if you are below the age of 50?

• $6,500

• $6,000

• $7,000

• $8,000

What is the most money you can put into an IRA in one year if you are over the age of 50?

• $6,500

• $6,000

• $7,000

• $8,000

What is the yearly income limit for a traditional IRA if you are single?

• there is no limit

• $161,000

• $240,000

• $151,000

What is the yearly income limit for a Roth IRA if you are single?

• there is no limit

• $161,000

• $240,000

• $151,000