Which of the following statements regarding traditional IRAs is true?
A)Once a taxpayer reaches 55 years of age she is allowed to contribute an additional $1,000 a year.
B)Taxpayers with high income are not allowed to contribute to traditional IRAs.
C)Taxpayers who participate in an employer-sponsored retirement plan are allowed to deduct contributions to a traditional IRA regardless of their AGI.
D)A single taxpayer with no earned income is not allowed to deduct contributions to traditional IRAs.

Question

Quizplus · Accepted Answer

Contributions to traditional IRAs are generally deductible, but the ability to deduct contributions is subject to income limits, especially if the taxpayer or their spouse participates in an employer-sponsored retirement plan. However, having no earned income disqualifies a taxpayer from making deductible contributions to a traditional IRA, as earned income is a requirement for IRA contributions.

Which of the Following Statements Regarding Traditional IRAs Is True