CPP-001 Exam Questions and Answers

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NEW QUESTION: 1
Which of the following plans allows the contributor to withdraw both his earnings and contributions
tax-free if certain conditions are met?
A. 401(k) plan
B. money purchase plan
C. traditional IRA
D. Roth IRA
Answer: D
Explanation:
The Roth IRA allows the contributor to withdraw both his earnings and contributions tax-free
if the Roth IRA has been in existence for at least 5 years and the contributor has reached the age of 59 1/2 .
In all of the other choices, only non-tax-deductible contributions may be withdrawn tax-free.


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