Donna,age 50,is single and earns $50,000 annually.She is covered under her employer's retirement plan.Donna would like to start a traditional IRA and contribute $5,000 this year.Which of the following describes her ability to establish a traditional IRA and the tax treatment of her contribution?

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Donna can establish a traditional IRA regardless of her income level or participation in an employer's retirement plan. Her contribution is fully tax deductible because her income is below the IRS threshold for partial or no deductibility for single filers covered by a workplace retirement plan.

Donna,age 50,is Single and Earns $50,000 Annually