Which of the Following Statements Are True About a Traditional

question 15

Multiple Choice

Which of the following statements are true about a traditional IRA?
I. Subject to an income limit,in 2011 a single person could contribute up to $5,000 per year of pretax income to an IRA.
II. All withdrawals are tax-free.
III. Earnings on the IRA account are not taxed until withdrawn.
IV. You must begin withdrawals at age 59 ½.
V. Withdrawal(s) can be a lump sum or installments.

• A)I,II,IV
• B)I,II,IV,and V
• C)I,III,and V
• D)II,IV,and V
• E)III,IV,and V

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Definitions:

Realistic Goals

Objectives that are attainable and practical, taking into account current resources and constraints.

Set

A collection of distinct objects, considered as a whole, often grouped together because they share common characteristics.

Collaborate

To work jointly with others or together especially in an intellectual endeavor.

Peak Performer

An individual who consistently reaches top performance levels in their activities or field.