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1.
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.
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.
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.
4.
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.
5.
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.