3 Questions
- In order to contribute to both a traditional IRA and a Roth IRA in the same year, a customer must have sufficient
A. ordinary income
B. passive income
C. earned income
D. portfolio income
earned income
- Chris Perez began contributing $3,000 a year to a Roth IRA account 10 years ago when he was 50 years old. The account value today has grown to $60,000. He withdraws $5,000 from the account. Perez will owe taxes on
A. the entire amount of the withdrawal
B. none of the withdrawal
C. the principal portion of the withdrawal
D. the gains plus a 10% penalty for premature distribution
none of the withdrawal
- A retirement plan that requires a formula-based payment for the retiree's life is
A. a pension plan
B. a defined contribution plan
C. a money purchase plan
D. a 401(k) plan
a pension plan
Test your knowledge on IRA contributions by determining the type of income needed to contribute to a traditional IRA and a Roth IRA in the same year.
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