What is the maximum deductible contribution that Erick (age 32 and single) can make in 2018 to an Individual Retirement Account(s) if he earns $62,000 and is not covered by an employer-sponsored retirement plan?
A) $6,500 ($5,500 plus an extra $1,000 catch-up contribution) to a traditional IRA and zero to a Roth IRA.
B) $5,500 to a traditional IRA but only $1,500 additional to a Roth IRA
C) $5,500 to a traditional IRA
D) $4,500 to a traditional IRA due to the income limitation AGI Phase-Out Ranges for 2018 IRAs

Question

What is the maximum deductible contribution that Erick (age 32 and single) can make in 2018 to an Individual Retirement Account(s) if he earns $62,000 and is not covered by an employer-sponsored retirement plan?
A) $6,500 ($5,500 plus an extra $1,000 catch-up contribution) to a traditional IRA and zero to a Roth IRA. 
B) $5,500 to a traditional IRA but only $1,500 additional to a Roth IRA 
C) $5,500 to a traditional IRA 
D) $4,500 to a traditional IRA due to the income limitation AGI Phase-Out Ranges for 2018 IRAs

Quizplus · Accepted Answer

Based on the information given, since Erick is not covered by an employer-sponsored retirement plan and his income is below the phase-out range, he can contribute up to $5,500 to a traditional IRA. He is not eligible to make a deductible contribution to a Roth IRA because his income is above the limit for making the full contribution.

What Is the Maximum Deductible Contribution That Erick (Age 32