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:

Assumptions

Statements or ideas accepted as true without proof, used as the basis for reasoning or argumentation.

Explanandum

The phenomenon or event that is to be explained, often used in the context of scientific inquiry.

Hypothesis

A proposed explanation for a phenomenon, often based on limited evidence as a starting point for further investigation.

Plausible

Appearing likely or probable, often based on circumstantial evidence or logical reasoning, but not confirmed.