Which of the Following Statements Comparing Traditional and Roth IRAs

question 36

Multiple Choice

Which of the following statements comparing traditional and Roth IRAs is false?

• A) For a 57-year old individual, the maximum allowable contribution to either type of IRA is $6,000.
• B) Contributions to traditional IRAs may be deductible; contributions to Roth IRAs are nondeductible.
• C) Individuals who have reached age 70½ must begin liquidating either type of IRA.
• D) Individuals may have to pay a premature withdrawal penalty from either type of IRA.

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Definitions:

Wind Power

The process of converting wind energy into electricity using wind turbines.

Hydroelectric Plants

Facilities that produce electricity by using water flow to drive turbines, often located at dams in rivers or streams.

Switzerland

A country in Central Europe known for its mountainous landscape, neutral policy, and high standard of living.

Norway

A Scandinavian country known for its mountains, fjords, and deep coastal inlets, as well as a high standard of living and strong emphasis on environmental conservation.