This topic contains a solution. Click here to go to the answer

Author Question: Rita is 66 years old. She earned 20,000 this year working part-time at a store and her modified ... (Read 74 times)

Alygatorr01285

  • Hero Member
  • *****
  • Posts: 564
Rita is 66 years old. She earned 20,000 this year working part-time at a store and her modified adjusted gross income was 28,000. Rita is considering making a 3,000 contribution to her traditional IRA.
 
  Which of the following statements is true regarding this contribution?
  A) Rita cannot contribute to her traditional IRA because she is over age 65.
  B) Rita can make a 3,000 contribution to her traditional IRA, but it is not tax deductible.
  C) Rita can make a 3,000 contribution to her traditional IRA, but it is only partially tax deductible.
  D) Rita can make a 3,000 contribution to her traditional IRA, and it is fully tax deductible.

Question 2

Daryl, age 42, quit his job. His employer offered a defined contribution pension plan, and the balance in the account was 30,000 when Daryl quit. He can avoid immediate taxation of these funds by
 
  A) taking a lump-sum distribution.
  B) using an IRA rollover account.
  C) receiving the money through four equal installments.
  D) using the funds to purchase common stock issued by the former employer.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ju

  • Sr. Member
  • ****
  • Posts: 325
Answer to Question 1

Answer: D

Answer to Question 2

Answer: B




Alygatorr01285

  • Member
  • Posts: 564
Reply 2 on: Jul 11, 2018
YES! Correct, THANKS for helping me on my review


alexanderhamilton

  • Member
  • Posts: 334
Reply 3 on: Yesterday
:D TYSM

 

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

Approximately 15–25% of recognized pregnancies end in miscarriage. However, many miscarriages often occur before a woman even knows she is pregnant.

Did you know?

Every 10 seconds, a person in the United States goes to the emergency room complaining of head pain. About 1.2 million visits are for acute migraine attacks.

Did you know?

Less than one of every three adults with high LDL cholesterol has the condition under control. Only 48.1% with the condition are being treated for it.

Did you know?

Atropine was named after the Greek goddess Atropos, the oldest and ugliest of the three sisters known as the Fates, who controlled the destiny of men.

For a complete list of videos, visit our video library