Which of the Following Statements Regarding IRAs Is False

question 38

Multiple Choice

Which of the following statements regarding IRAs is False?

• A) Taxpayers who participate in an employer-sponsored retirement plan may be allowed to make deductible contributions to a traditional IRA.
• B) The ability to make deductible contributions to a traditional IRA and nondeductible contributions to a Roth IRA may be subject to phase-out based on modified AGI.
• C) A taxpayer may contribute to a traditional IRA in 2018 but deduct the contribution on her 2017 tax return.
• D) Taxpayers who have made nondeductible contributions to a traditional IRA are taxed on the full proceeds when they receive distributions from the IRA.

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Definitions:

Monthly Cash Expenses

The total of all cash outflows or expenditures that a company or individual incurs within a month.

Cash Burn

The rate at which a company spends its cash reserves before generating positive cash flow.

Cash Equivalents

Highly liquid investments that are readily convertible to known amounts of cash and have an original maturity of three months or less.

Monthly Cash Expenses

The total amount of money spent by an individual or business in cash over the course of a month.