Answer Happy

33. Which of the following statements about Roth IRAs and Traditional IRAs (sometimes called regular IRAs) is (are) correct? I. A traditional IRA has before-tax contributions, tax-deferred growth, and distributions are taxed as ordinary income. II. A Roth IRA has after-tax contributions, tax-deferred growth, and tax-free distributions, assuming IRS requirements are met. a. I only b. II only c. Both I and II d. Neither I nor II 34. All of the following exceptions apply to the 72(1) 10% penalty from a distribution from an IRA except: a. Retirement at age 55 b. Childbirth or adoption by the client c. Death of the client d. Taking $10,000 for the first home purchase by a client 35. Which of the following statements about deducting uniforms is (are) correct? I. A clown costume is deductible because it is not adaptable to street use. A steal toed boot is deductible for safety reasons. II. a. I only b. II only c. Both I and II d. Neither I nor II Essay-8 points Grace, age 25, is single and has no dependents. She is a high school teacher and e $30,000 salary in the current year. Her other income consisted of a $1,000 prize won in a sweepstakes contest and $500 interest on tax exempt municipal bonds she received as a