Which of the Following Statements Regarding Roth IRAs Distributions Is

question 90

Multiple Choice

Which of the following statements regarding Roth IRAs 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:

Disposable Income

The budget households have for saving and spending activities after income taxes deductions.

Induced Consumption

Consumer spending that increases as income rises, and decreases when income falls, reflecting a direct relationship between income and consumption.

Consumption Function

An economic formula that represents the relationship between total consumption and gross national income.

Annual Consumption

The total amount of goods and services used or consumed by individuals or groups within a one-year period.