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1.
Your contributions to an IRA are fully tax deductible if _______.
You are not also covered by an employer-sponsored retirement plan. In this case, you get the full deduction.
2.
When two spouses married to each other each have IRAs and only one of them is also covered by an employer-sponsored retirement plan, both spouses may take a tax deduction on their IRA contributions. These tax deductions are limited by their _______.
Joint adjusted gross income.
3.
If you do not qualify for IRA tax deductibility, you can still contribute to an IRA.
True. As long as you have earned income, you can contribute, regardless of whether you can deduct.
4.
If you are unmarried and you earn no money at all from work this year, how much can you contribute to an individual retirement account for this year?
Nothing. If you are unmarried, you must have earned income in order to contribute.
5.
Capital gains on Roth IRAs are _________.
Tax-free. As long as you meet the age and waiting-time requirements, dividends and capital gains are tax-free.