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:

Influence

The capacity to have an effect on the character, development, or behavior of someone or something.

Canadians

Citizens or permanent residents of Canada, a country in North America, known for its multicultural society and bilingual English-French heritage.

First-Past-The-Post

An electoral system in which candidates compete in single-member districts, with the winner being the candidate who receives the most votes, regardless of whether or not a majority is achieved.

Electoral System

is a set of rules that determine how elections and referendums are conducted and how their results are determined.