Which of the Following Statements About IRA Accounts Is True

question 53

Multiple Choice

Which of the following statements about IRA accounts is true?

• A) An IRA is a taxable investment plan that enables a person to save part of his or her income for retirement
• B) Current income taxes are paid on IRA deposits
• C) The benefit of an IRA is that invested money is not taxed
• D) IRA earnings are not taxed as income when they are withdrawn

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Definitions:

Deferral Method

An accounting practice where revenue or expenses are recorded in a period different from when they are actually earned or incurred.

Programmatic Reporting

A method of reporting that involves the use of automated software to generate data reports, often used in digital advertising and marketing.

Donations

Voluntary transfers of assets, including cash, goods, or services to another party without directly receiving something of equal value.

Endowment Contribution

A donation made to an organization with the stipulation that the funds are to be invested and the principal remained intact.