Which of the Following Statements Regarding Individual Retirement Accounts (IRA)is

question 17

Multiple Choice

Which of the following statements regarding Individual Retirement Accounts (IRA) is incorrect?

• A)Contributions to a conventional IRA may be tax-deductible while contributions to a Roth IRA are never tax-deductible.
• B)Excess contributions to an IRA are subject to an excise tax.
• C)Because IRA contributions are based on compensation,a non-working spouse cannot make a contribution to an IRA.
• D)Once a taxpayer reaches age 70½,deductible contributions cannot be made to a conventional IRA.

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Definitions:

Operating Strategy

A plan that outlines how a business will use its resources to achieve its objectives and maintain competitive advantage.

Corporate Strategy

An overall, long-term plan of action designed to achieve the core objectives and overarching goals of an entire organization.

Strategic Business Unit

A semi-autonomous unit within an organization that focuses on a specific market or product line, often with its own strategic direction.

Strategic Alliance

A cooperative agreement between two or more organizations to pursue a set of agreed upon objectives while remaining independent organizations.