Home > Retirement > Intermediate
Retirement Intermediate: IRA Distributions

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
The annuity method provides only for the distribution of dividends.
Choose wisely. There is only one correct answer.
False. The money it takes from a fund includes principal as well as all earnings.
2.
If you make IRA contributions that are taxed, your withdrawals will not be taxed.
Choose wisely. There is only one correct answer.
False. Remember that earnings are always taxed. However, the contributions referred to in the question will not be taxed.
3.
The earnings of an IRA include all of the following except _______.
Choose wisely. There is only one correct answer.
The money you paid into the IRA. This money is a contribution, rather than earnings.
4.
At age 59½, you must begin taking distributions from your individual retirement account.
Choose wisely. There is only one correct answer.
False. At 73, you are required to start taking distributions. You have the option of taking them when you reach 59½.
5.
Which of the following is not an exception to the 10 percent early withdrawal penalty for IRAs?
Choose wisely. There is only one correct answer.
First-time automobile expenses. First-time home purchases, however, are allowed.