The Tax Reform Act of 1986

question 17

Multiple Choice

The Tax Reform Act of 1986

• A) Preserved the tax advantage of annuities but curtailed deductions for IRAs.
• B) Allowed whole life insurance policies to be sold.
• C) Identified annuities to be the same as certificates of deposit.
• D) Allowed annuities to be purchased for individual retirement accounts.
• E) Made all annuities tax free.

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Definitions:

Capital Investments

Funds invested in a company or organization with the expectation of achieving long-term financial gain, typically in the form of physical assets such as property, plant, or equipment.

TMX Group

A Canadian financial services company that operates multiple securities exchanges, including the Toronto Stock Exchange (TSX) and TSX Venture Exchange.

Toronto Stock Exchange

A major stock exchange in Canada, where shares of companies are bought and sold.

TSX Venture Exchange

A Canadian stock exchange for small and emerging companies, focusing on microcap and emerging markets.