2. A - The _____ is treated the same as a traditional IRA with a few exceptions. No tax deduction is allowed for any contribution to a ____. Unlike a traditional IRA, contributions to a ____ are permitted after the individual has reached age 70½. Further, the mandatory distribution rules do not apply; thus, required minimum distributions need not begin by April 1 of the year following the year the individual attains age 70½. Qualified distributions from Roth IRAs are not includible in income.Thus, earnings are tax-free, not tax-deferred as with traditional IRAs.
Maximum contributions for both the Traditional IRA and Roth IRA:For the year 2013, $5,500 per individual and $11,000 total for individual and spouse,plus an additional $1,000 for individuals age 50 and older.
Roth IRA (Individual Retirement Account)