Which of the Following Statements Regarding IRAs Is False

question 51

Multiple Choice

Which of the following statements regarding IRAs is false?

• A) Taxpayers who participate in an employer-sponsored retirement plan may be allowed to make deductible contributions to a traditional IRA.
• B) The ability to make deductible contributions to a traditional IRA and nondeductible contributions to a Roth IRA may be subject to phase-out based on AGI.
• C) A taxpayer may contribute to a traditional IRA in 2017 but deduct the contribution on her 2016 tax return.
• D) Taxpayers who have made nondeductible contributions to a traditional IRA are taxed on the full proceeds when they receive distributions from the IRA.

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Definitions:

Electroencephalograph (EEG)

A device used to record the electrical activity of the brain, typically used for diagnostic purposes.

Electromyograph (EMG)

A diagnostic tool used to measure the electrical activity produced by skeletal muscles.

Electrocardiograph (EKG)

A medical test that measures the electrical activity of the heart to identify various heart conditions.

Electro-Oculograph (EOG)

A method of measuring eye movements by recording the electrical activity generated by the movement of the eye.