Taxes, Savings, Investments & Philanthropy Quiz ( Hard )

Interest earned in savings accounts is considered (a)   and must be reported on a tax return.

A (a)   market refers to a period when stock prices are falling and investor confidence is low.

A Roth IRA allows tax-deferred growth, and withdrawals are taxed upon retirement.

• True

• False

Dividends received as stock are taxed immediately at the regular income tax rate.

• True

• False

Cryptocurrency purchases are taxed as capital gains immediately upon purchase.

• True

• False

In a 50-30-20 budget, 30% of income should be allocated toward personal savings.

• True

• False

Selling a second home at a profit may result in capital gains taxes without exclusions.

• True

• False

Can interest from bonds be taxed as ordinary income?

• Yes

• No

Are contributions to traditional IRAs made with after-tax dollars?

• Yes

• No

Do mutual funds allow investors to diversify by pooling money into various investments?

• Yes

• No