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1.
The traditional individual retirement account has all of the following characteristics except for ______.
Contributions that are never tax-deductible. They can be if certain conditions are met. It is the Roth IRA whose contributions are never deducted from taxable income.
2.
What is the name for the party that holds funds you contribute to your IRA?
Custodian. When holding funds, the party is referred to as a custodian.
3.
In a _______ individual retirement account, the money you contribute to it has already been taxed.
Roth. Your contributions come out of your net pay, meaning they have already been taxed.
4.
The contributions you make to a traditional IRA may be eligible for tax deduction.
True. There may be limits on how much is deductible, but the eligibility exists in traditional IRAs.
5.
Which of the following may not be used to hold a Roth IRA?
A collection of rare stamps. Collectibles are not allowed as Roth IRA investments.
