1. If an individual (or spouse) is an active participant in an employer-sponsored retirement plan, he or she cannot make a deductible IRA contribution.

True or False

2. If only one spouse is employed, and that spouse is not covered under an employer-sponsored retirement plan, then the non-working spouse can make a deductible contribution to his or her own IRA.

True or False

3. With a Roth IRA, contributions are deductible, the account grows tax-free, and distributions are not taxable.

True or False

4. A participant has an adjusted basis of zero in any nondeductible contributions to a traditional IRA.

True or False

5. Contributions to a Coverdell Education Savings Account can only be made by the parents or grandparents of a child under the age of 18.

True or False

6. Annually, up to $2,000 per beneficiary can be contributed to a Coverdell Education Savings Account

True or False