Which of the Following Statements Regarding IRAs Is False

question 151

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 2021 but deduct the contribution on her 2020 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:

Posthypnotic Suggestion

An instruction given to a person under hypnosis that is intended to be acted upon after he or she has awakened from the hypnotic state.

Synesthesia

A condition where one type of sensory stimulus involuntarily prompts the perception of another sense.

ESP

Extra-Sensory Perception, the claimed ability to obtain information without the use of known senses.

Parapsychology

The study of phenomena beyond the scope of traditional psychology, such as psychic abilities and near-death experiences.