Your Client Is Interested in Making a Contribution to a Roth

question 40

Multiple Choice

Your client is interested in making a contribution to a Roth IRA. Which of the following statements is not correct?

• A) Contributions to a Roth IRA are not tax deductible
• B) Anyone with earned income in a given year can make a contribution to a Roth IRA
• C) Active participation in an employer-sponsored plan is not an issue when considering eligibility for making a Roth IRA contribution
• D) Qualified withdrawals from a Roth IRA are tax free

Understand the concept of callable and puttable bonds and their characteristics.

Knowledge of bond ratings and the criteria for investment grade bonds.

Comprehend liquidity preference theory and its implications for the term structure of interest rates.

Analyze how changes in yield to maturity affect bond prices.

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Definitions:

Sales Presentation Method

An approach for effectively showcasing a product or service to potential customers with the aim of making a sale.

Type of Audience

Categories or classifications of listeners or viewers based on characteristics like demographics, interests, or behavior, used in targeting communication.

Core Principles

Fundamental beliefs or guidelines that serve as the foundation for a system, organization, or approach.

Honesty

The quality of being fair, truthful, and sincere in one's actions, communications, and business dealings.