Which of the Following Is True About Future Qualified Distributions
Which of the following is true about future qualified distributions from a Roth IRA by a person who will be 65 years old at the time the distributions begin? Assume the individual opened the account before age 60.
A)The entire amount of the distributions will be tax-free.
B)Only the accumulated earnings will be tax-free.
C)Only the previous contributions will be tax-free.
D)The entire amount of the distribution will be taxable.
All of the following are true with regard to a Roth IRA except
A)contributions to Roth IRAs are subject to special modified AGI limitations that are higher than those for traditional IRAs.
B)contributions to Roth IRAs are never tax deductible.
C)contributions to Roth IRAs must cease after the owner has reached age 70 1/2.
D)contributions to existing Roth IRAs must be made by the due date of the return.
Which of the following statements regarding Coverdell Education Savings Accounts is incorrect,disregarding any AGI limits?
A)Distributions cannot be used for elementary and secondary education expenses.
B)Distributions to the beneficiary are not taxable as long as they are used for tuition,fees,room and board.
C)Contributions can be made until the beneficiary reaches 18.
D)Contributors can make nondeductible contributions of up to $2,000 for each beneficiary.
Which of the following statements regarding Health Savings Accounts is incorrect?
A)Taxpayers are allowed to deduct contributions to a health savings account for AGI.
B)All taxpayers are eligible to establish a health savings account.
C)Distributions from a health savings account are excluded from gross income if used to pay qualified medical expenses.
D)Health savings account contributions are limited to the lesser of 100% of annual deductible under high deductible health plan or $3,250 for taxpayers without family coverage.