Question

Please select the word from the list that best fits the definition

Retirement investment vehicle that allows individuals to make after-tax contributions and, at maturity, to take tax free distributions.

Roth IRA
Junk Bonds
Annuity
CD
Municipal Bond
401K

Answer 1

That is a Roth IRA
All others will always have some taxable portion.
The only thing about a Roth IRA is it never actually “matures” rather the individual will mature. Or they reach retirement age as the IRS sees it and at 59.5 years of age there are no taxes or penalties on Roth distributions.

Answer 2

The answer is Roth IRA

Step-by-step explanation:

Definition: an individual retirement account allowing a person to set aside after-tax income up to a specified amount each year. Both earnings on the account and withdrawals after age 59½ are tax-free.