$3.$ Terry is an employee at a local accounting firm and earns $$75,000$ per year. She has recently opened an individual retirement account $($IRA$).$ Her account is considered a defined contribution plan. Please answer the following questions below.

a$.$ What type of accounting entity is an IRA under the IRC? Does this type of retirement account pay a tax? See $408$

b$.$ Can Terry deduct amounts she contributes to the IRA? See $408$ and IRC $219.$

c$.$ What is the limit of the deduction under the statute $($i$.$e$.$ IRC $408$ and IRC $219)?$ What is the inflation adjusted limitation for $2020$ per IRS Notice $2019-59?$

d$.$ After owning her account for $10$ years $(2030)$ and contributing faithfully every year, Terry has $$70,000$ in her original IRA. She opens a new IRA $($IRA #$2)$ and she wants to move $($rollover$)$ $$25,000$ from IRA #$1$ to IRA #$2.$ May she do so$?($See $408$ and $402)$

e$.$ Does Terry have a time limit in which to transfer the funds? $($See $402)$

f$.$ What happens if Terry takes a distribution from the IRA before reaching age $5912$ and does not return it to an IRA within $60$ days? $($See IRC $408$ and IRC $72)$

g$.$ What if Terry takes a distribution after reaching age $5912?$ What is the penalty? $($IRC $72).$