Which of the Following Statements Regarding Individual Retirement Accounts IRA)is

question 22

Multiple Choice

Which of the following statements regarding Individual Retirement Accounts IRA) is incorrect?

• A)Contributions to a conventional IRA may be tax-deductible while contributions to a Roth IRA are never tax-deductible.
• B)Because IRA contributions are based on compensation,a non-working spouse cannot make a contribution to an IRA.
• C)Once a taxpayer reaches age 70½,deductible contributions cannot be made to a conventional IRA.
• D)Excess contributions to an IRA are subject to an excise tax.

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Definitions:

Affected Groups

Populations or segments of society that experience impacts, either positive or negative, due to specific policies, events, or changes in environmental or economic conditions.

Lorenz Curve

A graphical representation used to show the distribution of income or wealth within an economy, illustrating the degree of inequality.

Constructed

Developed or formed through a deliberate process of bringing components or elements together.