Solved

With a Traditional IRA and Earned Income Below Federally Determined

Question 19

Multiple Choice

With a traditional IRA and earned income below federally determined limits,the annual contributions


A) are taxed,but the interest on the fund accumulates tax free.
B) reduce your taxes,but the interest income on the IRA is taxed in the year it is earned.
C) reduce your taxable income.The funds in the IRA and the return on the IRA are not taxed until the funds are disbursed in your retirement years.
D) are taxed once when they are placed in the IRA and again when they are disbursed from the IRA.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents