When a Rollover IRA Is Used to Shelter Lump-Sum Distributions

question 245

Multiple Choice

When a Rollover IRA is used to shelter lump-sum distributions from employer-sponsored retirement accounts,there

• A)is a $25,000-a-year limitation.
• B)will be no tax liability, but there will be a 10 percent penalty on the funds put in the IRA.
• C)will be no 10 percent penalty, but there will be a tax liability on the distribution put in the IRA.
• D)is no immediate tax liability or penalty on the funds put in the IRA.

---

Definitions:

General Ability Factor

A construct that represents the overall cognitive abilities of an individual, often derived from various intelligence test scores.

Information Processing Theories

Theories that describe how humans perceive, think, learn, and remember information, emphasizing the mental processes involved.

Interactionism Theories

Theories that emphasize the reciprocal influences between individuals and their environment in shaping behavior.

Genetic Theories

Theories that explain how genes and hereditary factors influence physical traits, behaviors, and diseases.