2026 Licensing & Certification Curricula (Securities, Cloud, IT, Real Estate, Bar & CPA) are now live
Official Practice ProblemFINRA Series 7 Blueprint: Function 1
← Prev Question (#s7-prep3-s7-q-318)Next Question (#s7-prep3-s7-q-320) →
Question #s7-prep3-s7-q-319Function 1Fundamental

Retirement Accounts

Roth 401(k) and Roth IRA share which feature?

Correct Choice: D

Roth = after-tax contributions, tax-free qualified withdrawals. Traditional = pretax contributions, taxable withdrawals.

Complete Analysis & Legal Rationale

Both Roth 401(k) and Roth IRA accounts feature tax-free qualified distributions. Contributions are made with after-tax dollars, both have contribution limits, and both are subject to early withdrawal penalties on earnings before age 59-1/2 unless an exception applies.

Distractor Autopsy (Why Other Options Are Traps)

FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:

Choice AIncorrect
Concept Trap

Does not match the governing concept in the explanation.

Choice BIncorrect
Concept Trap

Does not match the governing concept in the explanation.

Choice CIncorrect
Concept Trap

Does not match the governing concept in the explanation.

Choice DCorrect
None

Matches the verified teaching point in the explanation.

Authorities & References:

Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA materials.

🏛️

Regulatory Authority & Citations: Primary Legal Sources

Verified citations governing Question #s7-prep3-s7-q-319 (FINRA Series 7 Content Outline)

To pass the FINRA Series 7, candidates must understand not just the calculation formulas, but the exact federal securities acts, SRO rulebooks, and statutory frameworks that enforce them. Review the primary authority records below:

FINRAFINRA Series 7 Content Outline— General Securities Representative Examination (Series 7) Content Outline

Outline-level citation pending rule-specific upgrade. Verify against current FINRA materials.

Read FINRA Official Rule

Ready to test all 125 questions under real FINRA exam timing?

Take our timed 3h 45m simulator with real-time pass/fail scoring at the 72% benchmark.

Launch Full 125-Question Mock Exam Simulator →