Which of the Following Statements Regarding IRAs Is False

question 85

Multiple Choice

Which of the following statements regarding IRAs is false?

• A)Taxpayers who participate in an employer-sponsored retirement plan may be allowed to make deductible contributions to a traditional IRA.
• B)The ability to make deductible contributions to a traditional IRA and nondeductible contributions to a Roth IRA may be subject to phase-out based on AGI.
• C)A taxpayer may contribute to a traditional IRA in 2014 but deduct the contribution in 2013.
• D)Taxpayers who have made nondeductible contributions to a traditional IRA are taxed on the full proceeds when they receive distributions from the IRA.If taxpayers make nondeductible contributions to a traditional IRA,they are taxed on only a portion of any distributions received.That is,the distribution is split into an income portion and a nontaxable return of capital portion.

---

Definitions:

7-point Scale

A scale used for data collection, often in surveys, that ranges from 1 to 7, allowing respondents to indicate varying degrees of opinion or experience.

Statistical Technique

A methodological approach used in statistics for collecting, analyzing, interpreting, and presenting data.

Frozen TV Dinner

A prepackaged meal that comes frozen and is designed to be heated in the oven or microwave before eating.

Independent Populations

Refers to groups in which the members of one group do not affect the members of another group and vice versa.