Which of the Following Statements Regarding Roth IRA Distributions Is

question 27

Multiple Choice

Which of the following statements regarding Roth IRA distributions is true?

• A)A distribution is not a qualified distribution unless the distribution is at least two years after the taxpayer has opened the Roth IRA.
• B)A taxpayer receiving a distribution from a Roth IRA before reaching the age of 55 is generally not subject to an early distribution penalty.
• C)A Roth IRA does not have minimum distribution requirements.
• D)The full amount of all nonqualified distributions is subject to tax at the taxpayer's marginal tax rate.

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Definitions:

Socioeconomic Status

A combined measure of an individual's or family’s economic and social position relative to others, based on income, education, and occupation.

Sigmund Freud

An Austrian neurologist known for founding psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Id

In psychoanalytic theory, the part of the personality responsible for basic drives and instincts.

Ego

In Freud’s theory, a set of reactions that try to reconcile the id’s blind pleasure strivings with the demands of reality.