Thomas Maintains an IRA Account

question 33

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 2018 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:

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Caveat Emptor

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Sale of Goods Act

A UK law enacted in 1979 which regulates the sale of goods that are bought and sold in the UK and the contractual rights and obligations of buyers and sellers.

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