Author Question: Which of the following statements regarding individual retirement accounts (IRAs) is (are) true? ... (Read 41 times)

Tirant22 · **on:** Jul 11, 2018

Which of the following statements regarding individual retirement accounts (IRAs) is (are) true?

I. If an individual's only income during the year is from investments, he or she cannot make an IRA contribution.
II. The funds in the IRA can be used to purchase life insurance on the owner.
A) I only
B) II only
C) both I and II
D) neither I nor II

Question 2

Which of the following statements about the withdrawal of funds from a traditional IRA is true?

A) Withdrawals of deductible contributions between the ages of 59.5 and 65 are subject to a tax penalty unless they are withdrawn because of specified circumstances such as death or long-term disability.
B) Amounts attributable to nondeductible contributions are fully taxable as ordinary income when received.
C) Withdrawals must begin no later than April 1 of the year following the calendar year in which an individual attains age 70.5.
D) Withdrawals must be taken in the form of an annuity.