The Mental "Workbench" in the Mind Through Which Individuals Manipulate

question 32

Short Answer

The mental "workbench" in the mind through which individuals manipulate information and solve problems.

Distinguish between different types of retirement accounts and their purposes.

Understand the eligibility criteria for making deductible contributions to an IRA.

Grasp the taxability of distributions from qualified pension plans.

Know the contribution limits and rules for Coverdell Education Savings Accounts.

---

Definitions:

Creditor Beneficiary

A third party that benefits from a contract in which one party promises to pay a debt owed to the third party by the other contract party.

Promisee

The party in a contract who is promised something by another party (the promisor) and stands to benefit from the fulfillment of that promise.

Novation

The act of replacing one obligation with another, which involves a new party or a new agreement and extinguishes the original contract.

Substitute Contract

A legal agreement that replaces a previously made contract, either rectifying it or substituting parties or terms in the contract.