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:

Million

A numerical value representing one thousand thousands, or 1,000,000, often used as a unit of measure in demographics, finance, and other areas.

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The process of a substance becoming incorporated into a liquid to form a solution, or metaphorically, the disintegration or ending of an entity or relationship.

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The economic benefit and prosperity that results from the reduction of defense spending, typically occurring after the end of a major conflict.