All of the following are false regarding the taxation of traditional IRAs, EXCEPT:

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All of the following are false regarding the taxation of traditional IRAs, EXCEPT:

a. Distributions that are made before age 59 are subject to the IRS 10% early withdrawal penalty.

b. Contributions to a traditional IRA is not tax-deductible.

c. Interest earned on the principal is taxable in the year it is earned.

d. Withdrawals after age 59 1/2 are not taxed.

Answer: a. Distributions that are made before age 59 are subject to the IRS 10% early withdrawal penalty.

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