Which of the Following Statements Regarding Roth IRAs Is False

question 74

Multiple Choice

Which of the following statements regarding Roth IRAs is false?

• A)Contributions to Roth IRAs are not deductible.
• B)Qualifying distributions from Roth IRAs are not taxable.
• C)Whether or not they participate in an employer-sponsored retirement plan, taxpayers are allowed to contribute to Roth IRAs as long as their AGI does not exceed certain thresholds.
• D)Taxpayers who are married and file separately are not allowed to contribute to a Roth IRA.

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Definitions:

Inelastic

Describes a situation where the demand for a product or service is relatively unresponsive to changes in price, meaning that variations in price have little to no effect on the quantity demanded.

Whole Dollar Pricing

A pricing strategy where products are priced at round number amounts rather than using cents, designed to simplify pricing for consumers.

Price Maximization

A strategy aimed at setting the price of a product or service at the highest possible level at which the target segment of consumers is still willing to purchase it.

Elastic Demand

A situation where the demand for a product or service significantly changes in response to changes in its price.