Which of the Following Statements About the Withdrawal of Funds

question 3

Multiple Choice

Which of the following statements about the withdrawal of funds from a traditional IRA is true?

• A)Withdrawals of deductible contributions between the ages of 59.5 and 65 are subject to a tax penalty unless they are withdrawn because of specified circumstances such as death or long-term disability.
• B)Amounts attributable to nondeductible contributions are fully taxable as ordinary income when received.
• C)Withdrawals must begin no later than April 1 of the year following the calendar year in which an individual attains age 70.5.
• D)Withdrawals must be taken in the form of an annuity.

---

Definitions:

Economic Organization

The structured system of production, distribution, and consumption of goods and services within a society or economy.

Base Year

A reference year against which economic growth, inflation, and other economic indicators are measured to assess changes over time.

A W Phillips

An economist known for the Phillips Curve, which suggests an inverse relationship between unemployment and inflation rates.

Unemployment Rate

The quota of the working-age population that is without a job and searching for one.