Peter is a 20-year old college student who is claimed as a dependent on his parents' tax return. Peter's AGI consists of $12,000 interest and dividend income from a trust fund and $4,180 of wages from a part-time job. Compute Peter's maximum IRA contribution:

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Quizplus · Accepted Answer

Peter's maximum IRA contribution is limited to his earned income, which is $4,180 from his part-time job. Interest and dividend income do not count as earned income for IRA contribution purposes.

Peter Is a 20-Year Old College Student Who Is Claimed