During 2013,Marcia,who Is Single and Is Covered Under a Pension

question 87

Multiple Choice

During 2013,Marcia,who is single and is covered under a pension plan at work,contributes $5,500 into a Roth IRA.If her AGI is $63,000,which of the following is true?

• A)All of the contribution is deductible.
• B)None of the contribution is deductible.
• C)She must withdraw all of the contribution immediately since she is covered under a plan at work.
• D)Only 60% of the contribution is deductible since her AGI exceeds $59,000 by $4,000 and her maximum contribution is phased out by 40%.

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Definitions:

Registered Liquidator

A qualified individual authorized to act in relation to the winding up of insolvent companies, managing the process of realizing assets, paying creditors, and distributing any remaining assets.

Voluntary Winding Up

A process initiated by a company's shareholders to close the company, selling off its assets to pay creditors and distributing any remaining assets to shareholders.

Receivership

The first form of external administration prescribed by the Corporations Act. Receivership involves a receiver, receiver–manager or controller being appointed by a court or by secured creditors in order to protect the security of those creditors.