contestada

Jack is a 74-year-old, single taxpayer whose income consists of $10,000 in wages and $31,000 in social security benefits. The maximum amount he can contribute to a Roth IRA for 2019 is: A) $0 B) $6,000 C) $7,000 D) $10,000

Respuesta :

Parrain

Based on his age and income, the maximum that Jack is able to contribute to a Roth IRA in 2019 is C. 7,000.

In the year 2019, tax laws were such that:

  • $6,000 was the maximum to be contributed to Roth IRA.
  • $1,000 could be contributed in excess by those above the age of 50.

As Jack is above the age of 50, he can contribute an extra $1,000 over the limit which puts him at:

= 6,000 + 1,000

= $7,000

In conclusion, Jack can contribute a maximum of $7,000.

Find out more on Roth IRA at https://brainly.com/question/1300867.

Otras preguntas