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.

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Definitions:

Demand-pull Inflation

Inflation that occurs when the demand for goods and services exceeds their supply, leading to an increase in prices.

Demand-pull Inflation

A situation where inflation is caused by an increase in demand for goods and services, exceeding the available supply.

Cost-push Inflation

Inflation caused by an increase in production costs, such as raw materials and wages, which leads to a decrease in the supply of goods and services at the same price levels.

Social Security

A government program that provides financial assistance to individuals who are retired, disabled, or otherwise unable to earn sufficient income through employment.