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1.
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.
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.
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.
4.
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.
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.