Mollie is single and is an employee of the Royal Corporation. She is an active participant in the company's pension plan. Mollie's adjusted gross income is $118,000 and she has never established an IRA account. How much can Mollie contribute to a Roth IRA?

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Quizplus · Accepted Answer

Based on the information provided, Mollie can contribute up to $5,500 to a Roth IRA. The contribution limit for tax year 2019 is $6,000 for individuals under age 50, but Mollie's contribution limit is reduced by her active participation in a company pension plan. However, since her adjusted gross income is below the phase-out range for Roth IRA contributions (which for tax year 2019 is $122,000-$137,000 for single filers), she can contribute the full $5,500.

Mollie Is Single and Is an Employee of the Royal