Sammy,age 31,is unmarried and is not an active participant in a qualified retirement plan.His modified AGI is $55,000 in 2016.The maximum amount that Sammy can deduct for a contribution to a traditional IRA is:
A)$2,800.
B)$3,500.
C)$5,000.
D)$5,500.
E)None of the above.

Question

Quizplus · Accepted Answer

In 2016, the maximum contribution limit for a traditional IRA for individuals under 50 was $5,500. Since Sammy is not an active participant in a qualified retirement plan and his modified AGI is below the phase-out range, he can deduct the full amount.

Sammy,age 31,is Unmarried and Is Not an Active Participant in a Qualified