Question

1. what is a key advantage of a roth ira for young earners?

a. state income tax deductions
b. tax-free withdrawals in retirement
c. high contribution limits
d. guaranteed returns

Explanation:

A Roth IRA allows contributions with after - tax dollars. So, when withdrawals are made in retirement (under the right conditions), they are tax - free. State income tax deductions are not a key advantage (contributions are made with after - tax income). Contribution limits are not higher than some other retirement accounts. There are no guaranteed returns as Roth IRA investments are subject to market risks.

Answer:

B. Tax - free withdrawals in retirement