Thomas Maintains an IRA Account

question 38

Multiple Choice

Thomas maintains an IRA account.During the year he wins $10,000 in the state lottery and contributes it to his IRA account.Because he is an active participant in a qualified pension plan,he does not take a deduction for any part of his contribution.At the end of 2017 the total assets in the account are $30,000.Thomas is subject to a penalty on his contribution of

• A)$-0-
• B)$180
• C)$270
• D)$1,000
• E)$1,800

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Definitions:

Treat

To deal with or act towards someone or something in a specified manner, often with kindness or to provide medical care.

Self-Modification Program

A structured process or set of practices designed for individuals to alter their behavior or improve specific aspects of their lives through self-directed change.

Study Habits

The consistent practices and routines that individuals use to acquire and retain information efficiently.

Operant-Conditioning Phenomena

A learning process where behavior is controlled by consequences like rewards or punishments.