During 2017, 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 to an IRA during 2017 is $5,500. How much of atax-deductible contribution can Jacob make to an IRA?
A) $0 (Full-time students are not allowed to participate in IRAs).
B) $5,500.
C) $500.
D) $4,500.

Question

Quizplus · Accepted Answer

Jacob can contribute up to the amount of his earned income, which is $4,500, as long as it does not exceed the general limit of $5,500.

During 2017, Jacob, a 19 Year Old Full-Time Student, Earned