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:

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, often used to compare with actual results to assess performance.

Revenue Variance

The difference between actual revenue earned and the expected or budgeted revenue, indicating performance relative to financial projections.

Medical Supplies

Items used in healthcare settings for treatment, diagnosis, or preventive measures, including equipment and consumable goods.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, making it more useful for management control.