In a Distribution Rollover from an IRA,the Recipient Must Contribute

question 78

True/False

In a distribution rollover from an IRA,the recipient must contribute 80 percent of the distributed amount to the new trustee in order for the rollover to be tax free.

---

Definitions:

Bankruptcy

is a legal process through which individuals or businesses unable to meet their financial obligations can seek relief from some or all of their debts.

Weighted Average Cost of Capital

A calculation of a firm's cost of capital, wherein each category of capital is proportionally weighted.

Interest Tax Shield

A deduction that companies can take from their taxable income for the interest payments they have made on their debt, effectively reducing their taxable income.

Bankruptcy Cost

The expenses and financial losses associated with going through bankruptcy, including legal fees, lost business, and detrimental effects on creditworthiness.