During 2019, Jacob, a 19-year-old full-time student, earned $4,500 during the year and was not eligible to participate in an employer-sponsored retirement plan.The general limit for deductible contributions during 2019 is $6,000.How much of a tax-deductible contribution can Jacob make to an IRA?
A)$0 (Full-time students are not allowed to participate in IRAs)
B)$500
C)$4,500
D)$6,000

Question

Quizplus · Accepted Answer

Jacob can contribute up to the amount he earned, which is $4,500, to an IRA. Age and student status do not affect eligibility for contributing to an IRA, only earned income does.

During 2019, Jacob, a 19-Year-Old Full-Time Student, Earned $4,500 During