Which of the Following Statements About IRAs Is False

question 20

Multiple Choice

Which of the following statements about IRAs is false?

• A) Withdrawals made after age 59-1/2 are taxed as ordinary income in the year they are received.
• B) Only deductible contributions and tax deferred interest paid out during retirement are taxed as income.
• C) Early withdrawal from an IRA causes a 20% tax penalty to be incurred.
• D) Withdrawal of IRA funds must begin by age 70-1/2.

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Definitions:

Amoral Managers

Amoral managers are those who do not consider the ethical implications of their decisions, focusing solely on business objectives without regard for moral principles.

Equal Access

The principle that everyone should have the same opportunities to access services, resources, or rights without discrimination.

Ethical Principles

The foundational guidelines for moral conduct that help individuals discern right from wrong in their decisions and actions.

Behave Ethically

Acting in a manner consistent with moral principles, standards, and values.