Which of the Following Statements Is Incorrect

question 93

Multiple Choice

Which of the following statements is incorrect?

• A)Roth IRA distributions are never taxable.
• B)Taxpayers can roll over plan assets from one plan to another tax-free if certain rules are followed.
• C)If distributions from a Coverdell Education Savings Account are used for qualified education expenses,the distributions are tax-free.
• D)For traditional IRA distributions,the date on which minimum payments must begin is April 1 of the calendar year following the year in which the taxpayer reaches age 70½.

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Definitions:

Equal Payments

A series of payments that are the same in amount, typically made at regular intervals over a specified period of time.

Focal Date

The date selected for the calculation of equivalent values.

Compounded Annually

Definition: Refers to the calculation and addition of interest to the principal sum of a loan or deposit once every year.

Debt

money that is owed or due to be paid to someone else, often as a result of borrowing funds.