Chapter 5 - TOOLS & TECHNIQUES OF EMPLOYEE BENEFIT AND...

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9th Edition College Course Materials Deanna L. Sharpe, Ph.D., CFP®, CRPC®, CRPS® Associate Professor CFP® Program Director Personal Financial Planning Department University of Missouri-Columbia Please Note : Correct answers for each question are indicated in bold type. After each question, the number of the page containing information relevant to answering the question is given. When a calculation is necessary or the reasoning behind a given answer may be unclear, a brief rationale for the correct answer is also given. Part A: Retirement Planning IRAs Chapter 5: Traditional IRAs True/False 5.1 Under current tax law, a nonrefundable tax credit is available for some lower income taxpayers who make a contribution to a traditional IRA. 5.2 Distributions from a traditional IRA cannot be made before the participant turns 59 ½ unless the IRA owner dies. 5.3 IRAs can be invested in a variety of investment vehicles, including mutual funds, stocks, bonds, and life insurance contracts. Answer: 5.1 True [p. 51] 5.2 False [p. 52] 5.3 False [p. 55] Multiple Choice 5.4 A nondeductible traditional IRA a. allows prior contributions to be distributed tax free
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Chapter 5 - TOOLS & TECHNIQUES OF EMPLOYEE BENEFIT AND...

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