Which of the Following Is True Concerning IRA's,401(k)and 403(b)plans

question 28

Multiple Choice

Which of the following is true concerning IRA's,401(k) and 403(b) plans?

• A)Not everyone is eligible to put funds into them.
• B)There are restrictions on the amount of funds that can be put into them.
• C)Except under unusual circumstances,there are penalties for withdrawals before retirement.
• D)All of the above are correct.

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Definitions:

Normal Balance

The side (debit or credit) of an account that is usual or expected to increase the balance of that account.

Liability

Financial obligations or debts that a company owes to others, which must be settled through the transfer of assets or provision of services.

Asset

An economic resource that can be owned or controlled to produce value and that is held by a company to produce positive economic value.

Equity

The worth of an owner's stake in a property or business once all debts and other financial obligations have been subtracted.