All of the following statements regarding a traditional individual retirement account (IRA) are correct EXCEPT:

All of the following statements regarding a traditional individual retirement account (IRA) are correct EXCEPT:


A) distributions must begin from an IRA by April 1 of the year following the IRA owner's attainment of age 70½.

B) assuming that only tax-deductible contributions were made into the IRA, 100% of distributions from it are treated as taxable income.

C) a 10% penalty is assessed on any distribution from an IRA before age 59½.

D) IRAs are available to anyone younger than age 70½ with earned income, but deductible contributions are limited for individuals who are also covered under an employer-sponsored retirement plan.



Answer: C) a 10% penalty is assessed on any distribution from an IRA before age 59½.

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