Mrs Soon Retired at Age 68 and Withdrew the Entire

question 28

Multiple Choice

Mrs. Soon retired at age 68 and withdrew the entire $77,100 balance from an IRA to buy a sailboat. She opened this account in 1999. Which of the following statements is false?

• A) If the account is a Roth IRA, none of the withdrawal is taxable.
• B) If the account is a traditional IRA to which Mrs. Soon made $32,000 nondeductible contributions, $45,100 of the withdrawal is taxable.
• C) If the account is a traditional IRA funded entirely with deductible contributions, the entire $77,100 withdrawal is taxable.
• D) None of these choices arefalse.

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Definitions:

Isthmus

A narrow strip of land connecting two larger land areas or a constricted part of an organ connecting two larger parts.

Metabolic Activity

Metabolic activity encompasses the various biochemical processes that occur within organisms to maintain life, including the conversion of nutrients into energy.

Hyperthyroidism

Hyperthyroidism is a condition characterized by the overproduction of thyroid hormones by the thyroid gland, leading to accelerated metabolism and various systemic effects.

Weight Loss

The reduction in total body mass due to a mean loss of fluid, body fat, or lean mass, often resulting from exercise, diet, or a specific health regimen.