QUESTION $33$

Which of the following statements regarding IRAs is true?

A taxpayer with AGI above a certain threshold is not allowed to contribute directly to a Roth IRA or to roll over funds from a traditional IRA to a Roth IRA.

A taxpayer contributing directly to a Roth IRA may elect to deduct the contributions.

If taxpayer makes a nondeductible contribution to a traditional IRA, the taxpayer can convert those funds into a Roth IRA without recognizing taxable income.

If taxpayer makes a deductible contribution to a traditional IRA, the taxpayer can convert those funds into a Roth IRA without recognizing taxable income on the conversion.