Ms. Jorland is a 30-year old single taxpayer. Her $3,760 AGI is the total of $7,940 interest and dividend income from a trust fund, $4,190 income from a rent property, and an $8,370 loss from a new business that she started this year. Compute Ms. Jorland's maximum IRA contribution.

Question

Quizplus · Accepted Answer

Ms. Jorland is not eligible to make any IRA contributions because she has no earned income. The rental income and the loss from the new business do not count as earned income for IRA contribution purposes. The interest and dividend income from the trust fund is classified as unearned income and thus does not qualify for IRA contributions.

Ms Jorland Is a 30-Year Old Single Taxpayer