Tyne is a 48-year-old an unmarried taxpayer who is not an active participant in an employer-sponsored qualified retirement plan.Before IRA contributions,her AGI is $63,000 in 2014.What is the maximum amount she may contribute to a tax deductible IRA?
A)$ 0
B)$4,400
C)$5,500
D)$6,500

Question

Quizplus · Accepted Answer

Since Tyne is not an active participant in an employer-sponsored qualified retirement plan, she can deduct the full amount of her contribution to a traditional IRA up to $5,500 (the maximum contribution limit for tax year 2014). Option A is incorrect because she is eligible to contribute to a traditional IRA even though she is not actively participating in an employer-sponsored qualified retirement plan. Option B is incorrect because the maximum contribution limit for tax year 2014 is $5,500. Option D is incorrect because individuals who are age 50 or over can make an additional catch-up contribution of $1,000, but this does not apply to Tyne based on the information provided.

Tyne Is a 48-Year-Old an Unmarried Taxpayer Who Is Not