Which of the Following Statements Concerning Traditional IRAs and Roth

question 3

Multiple Choice

Which of the following statements concerning traditional IRAs and Roth IRAs is true?

• A)A taxpayer may contribute to a Roth IRA at any age but a taxpayer is not allowed to contribute to a traditional IRA after reaching 70½ years of age.
• B)The annual contribution limits for a traditional IRA and Roth IRA are the same.
• C)Taxpayers with high income are allowed to contribute to traditional IRAs but not to Roth IRAs.
• D)All of these choices are correct.

---

Definitions:

Dissonance Situation

A psychological state where an individual experiences discomfort or conflict due to holding two or more contradictory beliefs, ideas, or values at the same time.

Potential Dissonance

The possible tension or conflict that arises when a person holds two contradictory beliefs or attitudes simultaneously.

Low-ball Technique

A persuasion strategy where an initially favorable offer is made to get an agreement, and then terms are made less favorable to the agreement party.

Postdecisional Dissonance

The discomfort experienced after making a difficult choice, often involving feelings of regret or uncertainty.