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• D) IRA earnings are not taxed as income when they are withdrawn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:

Governing Professionals

Individuals or bodies responsible for making and enforcing rules and standards within specific professions to ensure accountability and integrity.

Professions

Occupations requiring specialized knowledge and often long and intensive academic preparation.

Role Trust

The confidence in and reliance on individuals or groups to perform their functions or roles effectively and responsibly, particularly in professional settings.

Professionalism

The competence, skill, and standards expected of a professional in their conduct and work.