Which of the Following Statements Comparing Traditional and Roth IRAs

question 27

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 $6,500.
• 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:

Blackmail or Extort

The act of demanding payment or another benefit from someone in return for not revealing compromising or damaging information about them.

Unethical or Illegal Actions

Behaviors or decisions that are morally wrong and/or violate legal standards, typically involving misuse of power or resources.

Competing Firms

Competing firms are businesses that operate in the same market, offering similar products or services to the same customer base, and thus compete for market share, sales, and leadership in their industry.

Moral Idealism

A personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome.