Alex is 37 years old,single and employee of Ellis Company.
I.If Alex is an active participant in the company's pension plan,he is allowed to make a contribution to his IRA account only if his adjusted gross income is less than $59,000.
II.If Alex is an active participant in the company's pension plan,and has adjusted gross income of $64,000,he is allowed to contribute $5,500 to his IRA account,but he is only allowed a deduction of $2,750 for the contribution because his adjusted gross income is between $59,000 - $69,000.

Question

Quizplus · Accepted Answer

Statement II is correct as it follows the rules mentioned in the tax code for IRA contributions and deductions based on income and participation in employer-sponsored retirement plans. However, statement I is not complete as it does not mention the income range for partial deductions allowed for IRA contributions for active participants in the employer's plan. Therefore, statement I cannot be considered as correct.

Alex Is 37 Years Old,single and Employee of Ellis Company