Which of the Following Statements Regarding Individual Retirement Accounts (IRAs)

question 55

Multiple Choice

Which of the following statements regarding individual retirement accounts (IRAs) is true?

• A) Traditional IRAs can be opened by anyone with a modified adjusted gross income (MAGI) of more than $50,000.
• B) A 10% tax penalty applies to any funds withdrawn from a traditional IRA before 70½.
• C) Withdrawals from Roth IRAs are tax free, so long as the account has been open for 5 years and the individual is past the age of 59½.
• D) It is not possible to convert a traditional IRA to a Roth IRA.
• E) Contributions made to traditional IRAs are made with after-tax dollars.

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Definitions:

Anterograde Amnesia

An inability to form new memories following an event that caused the amnesia, even though recall of past events may be unaffected.

Retrieval Failure

The inability to recall information from the memory storage despite it being available and stored.

Capital of Spain

Madrid, which is the largest city of Spain and serves as its political, economic, and cultural center.

Implicit Memory

This memory allows for the accomplishment of tasks without active consciousness of the experiences that have shaped these actions.