Which of the Following Statements Comparing Traditional and Roth IRAs

question 104

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 72 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:

Middle-aged People

Individuals typically in the age range of 40 to 65, often experiencing significant life transitions, reassessment of life achievements, and physiological changes.

Memory Loss

The partial or total inability to recall past experiences or information, which may result from brain injury, disease, or psychological trauma.

Absentminded

A state of being easily distracted and forgetful, often due to lack of attention or concentration.

Memory Functioning

Refers to the processes involved in storing, retaining, and recalling information in the human brain.