Which of the following is true regarding the earnings of Roth IRA accounts?

The statement that Roth IRA accounts grow tax-free is accurate because the primary benefit of a Roth IRA is that the money contributed, as well as any investment earnings, can be withdrawn tax-free in retirement, provided certain conditions are met. This means that any gains made on investments within the Roth IRA are not subject to federal income taxes at the time of withdrawal, offering a significant tax advantage for long-term savers.

Contributions to a Roth IRA are made using after-tax dollars, meaning that taxes are paid before the funds go into the account. This unique characteristic allows for tax-free growth, unlike traditional IRAs where taxes are deferred until withdrawal. Thus, once you meet the age and holding period requirements, you can take money out without paying additional taxes on the earnings.

The other choices describe different tax scenarios or rules that do not apply to the earnings of a Roth IRA, making them less accurate in relation to the tax status of earnings within this particular retirement account.