During 2019,Marcia,who is single and is covered under a pension plan at work,contributes $6,000 into a Roth IRA.If her AGI is $68,000,which of the following is true?
A)All of the contribution is deductible.
B)None of the contribution is deductible.
C)She must withdraw all of the contribution immediately since she is covered under a plan at work.
D)Only 60% of the contribution is deductible since her AGI exceeds $64,000 by $4,000 and her maximum contribution is phased out by 40%.

Question

Quizplus · Accepted Answer

As Marcia is covered under a pension plan at work and her AGI is above $64,000, none of her contribution to the Roth IRA is deductible. This is because the phase-out limit for single individuals in 2019 is between $64,000 and $74,000. Therefore, she can still make the contribution but it won't reduce her taxable income.

During 2019,Marcia,who Is Single and Is Covered Under a Pension