Workers who are not active participants in an employer-sponsored retirement plan can deduct contributions to their IRA accounts from their gross income,within specified limits,when filing their federal income taxes.

Question

Quizplus · Accepted Answer

This is true. In 2020, the contribution limit for traditional IRAs was $6,000 ($7,000 for individuals age 50 and older). This amount can be deducted from a worker's gross income when filing their federal income taxes, as long as they meet certain income requirements and are not an active participant in an employer-sponsored retirement plan.

Workers Who Are Not Active Participants in an Employer-Sponsored Retirement