Which of the Following Are Characteristics of a Traditional IRA

question 47

Multiple Choice

Which of the following are characteristics of a traditional IRA?

• A)Most distributions made before age 59½ are subject to a 10 percent penalty tax.
• B)A taxpayer must begin taking distributions from the IRA by age 75½.
• C)Neither is a characteristic.
• D)Both are characteristics.

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Definitions:

Journal Entry

A notation in financial records that captures the debit and credit movements across accounts resulting from business transactions.

Fair Value

An estimate of the market value of an asset or liability, based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.

Valuing Assets

The process of determining the present worth of an asset or company.