Which of the Following Is Not a Characteristic of a Traditional

question 3

Multiple Choice

Which of the following is not a characteristic of a traditional IRA?

• A) For a married couple, the contribution limit doubles.
• B) Individuals over 50 are allowed to make additional catch-up contributions.
• C) Everyone is eligible for deductible contributions regardless of income.
• D) A 10% penalty normally applies if funds are withdrawn before age 59 1/2.

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Definitions:

Federal Budget

The government budget for a fiscal year that outlines the projected spending and revenue of the federal government.

Budget Deficits

The condition when a government, organization, or individual spends more money than it receives over a certain period, requiring borrowing to bridge the gap.

Multiplier Effect

An economic phenomenon where an initial injection of spending leads to increased income and consumption, further amplifying the initial economic impact.

Aggregate Demand

The total demand for all goods and services in an economy at a given overall price level and within a specified period.