Thomas Maintains an IRA Account

question 28

Multiple Choice

Thomas maintains an IRA account.During the year he wins $10,000 in the state lottery and contributes it to his IRA account.Because he is an active participant in a qualified pension plan,he does not take a deduction for any part of his contribution.At the end of 2013 the total assets in the account are $30,000.Thomas is subject to a penalty on his contribution of

• A)$ -0-
• B)$ 180
• C)$ 270
• D)$1,000
• E)$1,800

Familiarize with calculating variance and standard deviation of stock returns.

Grasp the concept of nominal, real, and after-tax rates of interest.

Analyze the effects of inflation on investment returns and purchasing power.

Comprehend the impact of government fiscal policies on interest rates.

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Definitions:

Consensual

Agreed upon by all parties involved; based on or involving mutual consent.

Statutory

Pertaining to laws passed by a legislative body; relates to statutes.

Judgment

A legal decision made by a court regarding the rights and liabilities of parties in a legal action or proceeding.

Attachment

(1) The point at which a creditor becomes the secured party who has a security interest in the collateral. (2) A court order permitting a local court officer to seize a debtor’s property.