For Qualified Individuals,a Contribution to a Traditional IRA (Individual Retirement

question 63

Multiple Choice

For qualified individuals,a contribution to a traditional IRA (Individual Retirement Account) is a(n)

• A) credit.
• B) adjustment to gross income.
• C) itemized expense.
• D) additional exemption amount.

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Definitions:

Capital Gain

The profit from selling a capital asset for more than its purchase price.

Dividends

Payments made by a corporation to its shareholders from the earnings of the company, usually in the form of cash or stocks.

Shares

Holdings in a corporation or financial asset, these units confer rights to an equitable distribution of dividends from declared profits.

Quarterly Dividend

A dividend paid by a company to its shareholders every quarter, representing a portion of the company's earnings.