Which of the following statements regarding a traditional individual retirement account (IRA) is NOT correct?
A) Distributions must begin from an IRA by April 1 of the year following the IRA owner's attainment of age 70½.
B) Assuming that only tax-deductible contributions were made into the IRA, 100% of distributions from it are treated as taxable income.
C) IRAs are available to anyone younger than age 70½ with earned income, but deductible contributions are limited for individuals who are also covered under an employer-sponsored retirement plan.
D) A 10% penalty is assessed on any distribution from an IRA before age 59½.
Ans: D) A 10% penalty is assessed on any distribution from an IRA before age 59½.
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