Which of the Following Statements Regarding IRAs Is False

question 3

Multiple Choice

Which of the following statements regarding IRAs is false?

• A)Taxpayers who participate in an employer-sponsored retirement plan may be allowed to make deductible contributions to a traditional IRA.
• B)The ability to make deductible contributions to a traditional IRA and nondeductible contributions to a Roth IRA may be subject to phase-out based on AGI.
• C)A taxpayer may contribute to a traditional IRA in 2020 but deduct the contribution in 2019.
• D)Taxpayers who have made nondeductible contributions to a traditional IRA are taxed on the full proceeds when they receive distributions from the IRA.

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Definitions:

Finite Number

A number that is countable and limited in value, as opposed to infinite numbers which have no end.

Infinitely

Without limit or end; extending beyond measure or comprehension.

Impossible

Refers to something that cannot be done or achieved within the existing conditions or limits.

Hasty Generalization

A logical fallacy where a conclusion is not logically justified by sufficient or unbiased evidence, typically involving conclusions drawn from an inadequate sample size.