Which of the Following Statements Regarding IRAs Is False

question 19

Multiple Choice

Which of the following statements regarding IRAs is false?

• A) Taxpayers who participate in an employer-sponsored retirement plan may be allowed to make deductible contributions to a traditional IRA.
• B) The ability to make deductible contributions to a traditional IRA and nondeductible contributions to a Roth IRA may be subject to phase-out based on AGI.
• C) A taxpayer may contribute to a traditional IRA in 2015 but deduct the contribution in 2014.
• D) Taxpayers who have made nondeductible contributions to a traditional IRA are taxed on the full proceeds when they receive distributions from the IRA.

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Definitions:

Warranties

Guarantees issued by a manufacturer or seller to a buyer, promising to repair or replace a product if it fails within a certain period of time.

Education

The systematic process of facilitating learning, or the acquisition of knowledge, skills, values, beliefs, and habits through various methods such as teaching, training, storytelling, discussion, and research.

Extracurricular Activities

Activities that fall outside the scope of the regular academic curriculum but are still considered important for overall education.

Adverse Selection

A situation in insurance and finance where parties at risk are more likely to participate in a contract, leading to a higher than average risk for the insurer or lender.