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1.
The earnings of an IRA include all of the following except _______.
The money you paid into the IRA. This money is a contribution, rather than earnings.
2.
Which of the following is not an exception to the 10 percent early withdrawal penalty for IRAs?
First-time automobile expenses. First-time home purchases, however, are allowed.
3.
If you make IRA contributions that are taxed, your withdrawals will not be taxed.
False. Remember that earnings are always taxed. However, the contributions referred to in the question will not be taxed.
4.
When it comes time to withdraw from your IRA for retirement, you can elect an IRA distribution method in which your IRA periodically sells plan assets.
True. It will sell assets and distribute the proceeds to you.
5.
At age 59½, you must begin taking distributions from your individual retirement account.
False. At 73, you are required to start taking distributions. You have the option of taking them when you reach 59½.