What Is a Roth IRA? - Definition, Rules & Benefits


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What is a Roth IRA?

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1. What is the 2014 contribution limit for eligible individuals under 50 to a Roth IRA?

2. What is the amount of the penalty imposed by the IRS for non-qualified early withdrawal distributions?

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About This Quiz & Worksheet

This quiz and worksheet can help you quickly assess your knowledge of Roth IRAs and the rules that regulate them. In order to pass the quiz, you will need to know characteristics of Roth IRAs and different publication numbers that should be reviewed prior to funding a Roth IRA.

Quiz & Worksheet Goals

Use this worksheet and quiz to review:

  • What a Roth IRA is
  • What IRA stands for
  • IRS publication numbers
  • Penalties for non-qualified early withdrawals

Skills Practiced

This quiz and worksheet combo helps you test out the following skills:

  • Problem solving - use acquired knowledge to solve financial practice problems
  • Information recall - access the knowledge you have gained regarding Roth IRAs
  • Knowledge application - use your knowledge to answer questions about IRS publication numbers

Additional Learning

To learn more about Roth IRAs, review the corresponding lesson titled What Is a Roth IRA? - Definition, Rules & Benefits. This lesson covers the following objectives:

  • Define Roth IRA
  • Examine the benefits of having a Roth IRA
  • Review eligibility for contributing to a Roth IRA
  • Identify the rules that regulate Roth IRAs