A taxpayer who is under 50 years of age and not an active participant in a retirement plan may make a contribution of up to $5,500 to an IRA, subject to the earned income limitation.

Question

Quizplus · Accepted Answer

This is correct as per the IRS rules for 2021. The contribution limit for individuals under 50 who are not active participants in a retirement plan is $6,000 in 2021. However, the earned income of the taxpayer must be at least equal to the amount of the contribution.

A Taxpayer Who Is Under 50 Years of Age and Not