Which of the Following Statements Comparing Traditional and Roth IRAs

question 98

Multiple Choice

Which of the following statements comparing traditional and Roth IRAs is false?

• A)For a 57-year old individual,the maximum allowable contribution to either type of IRA is $7,000.
• B)Contributions to traditional IRAs may be deductible; contributions to Roth IRAs are nondeductible.
• C)Individuals who have reached age 70½ must begin liquidating either type of IRA.
• D)Individuals may have to pay a premature withdrawal penalty from either type of IRA.

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Definitions:

Russian Ruble

The national currency of Russia, utilized as the medium of exchange within the country.

Appreciate

To increase in value or price over a period of time.

Freely Flexible Exchange Rates

A currency system where the value of a currency is allowed to fluctuate according to the foreign exchange market without direct government intervention.

Trade Deficit

A situation where a country's imports of goods and services exceed its exports of them.