Which of the Following Statements Comparing Traditional and Roth IRAs

question 27

Multiple Choice

Which of the following statements comparing traditional and Roth IRAs is false?

• A) For a 57-year old individual, the maximum allowable contribution to either type of IRA is $6,500.
• B) Contributions to traditional IRAs may be deductible; contributions to Roth IRAs are nondeductible.
• C) Individuals who have reached age 70½ must begin liquidating either type of IRA.
• D) Individuals may have to pay a premature withdrawal penalty from either type of IRA.

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Definitions:

Fairly Administered

Ensuring processes and decisions are conducted in a just, unbiased, and equitable manner.

Policies and Rules

Established guidelines and regulations designed to govern the conduct, procedures, and operations within an organization.

Procedural Justice

The fairness of the processes that resolve disputes and allocate resources, emphasizing transparency, consistency, and impartiality.

Sexual Harassment Allegations

Claims made by individuals regarding unwelcome sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature.