a roth ira is taxed: on its growth each year. at the time the retirement money is withdrawn. at a fixed, low…

a roth ira is taxed: on its growth each year. at the time the retirement money is withdrawn. at a fixed, low rate. at the time the money is put into the account.

a roth ira is taxed: on its growth each year. at the time the retirement money is withdrawn. at a fixed, low rate. at the time the money is put into the account.

Answer

Brief Explanations:

A Roth IRA (Individual Retirement Account) is a type of retirement savings account. Contributions to a Roth IRA are made with after - tax dollars. This means that when you put money into the account (contribute), you have already paid taxes on that income. In contrast to a traditional IRA (where contributions may be tax - deductible and taxes are paid upon withdrawal), for a Roth IRA, since the contributions are already taxed, there is no tax on the growth of the investments in the account over the years, and also no tax when the retirement money is withdrawn (as long as certain conditions like age and holding period are met). It is not taxed at a fixed, low rate in a special way that is different from its contribution - based tax treatment.

Answer:

at the time the money is put into the account.