Which of the Following Statements About IRAs Is False

question 6

Multiple Choice

Which of the following statements about IRAs is false?

• A) Annual contributions made to the account are tax-deductible up to certain amounts.
• B) They earn tax-deferred investment income.
• C) Only people in certain income categories can make deductible IRA contributions.
• D) The maximum annual deductible contribution is $4,000 per person.

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Definitions:

Scope of Authority

The scope of authority delineates the range of actions or decisions that an individual or entity, such as an employee or agent, is officially empowered to make on behalf of another party or organization.

Undisclosed Principal

A situation in an agency relationship where the identity of the principal is not revealed to the third party by the agent.

Liable

Legally responsible or answerable for an action or a situation.

Scope of Authority

The range or extent of power that an individual or organization legally has to make decisions or take action.