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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.
In a traditional IRA, any dividends and capital appreciation that accrue to your account are tax-deferred. What does this mean?
It means that you do not pay taxes until you withdraw them. In a traditional IRA, your earnings stay tax-deferred until you withdraw them.
3.
A contribution you make to an IRA this year may not be fully deductible if you participate in an employer-sponsored retirement plan.
True. If you do, your ability to deduct your IRA contributions begins to drop at a certain point.
4.
If you have an IRA and are covered by another qualified retirement plan, you must use your tax bracket to figure how much of your IRA contributions are tax-deductible.
False. You must use your adjusted gross income.
5.
Depending on family adjusted gross income and participation in an employer-sponsored retirement plan, each spouse with an IRA can take a tax deduction on _______ of his or her traditional IRA contribution.
All or part. The actual amount will depend upon his or her income.