What is the maximum deductible contribution that Erick (age 32 and single) can make in 2019 to an Individual Retirement Account(s) if he earns $62,000 and is not covered by an employer-sponsored retirement plan?
A)$7,000 ($6,000 plus an extra $1,000 catch-up contribution) to a traditional IRA and zero to a Roth IRA.
B)$6,000 to a traditional IRA but only $1,500 additional to a Roth IRA
C)$6,000 to a traditional IRA
D)$4,500 to a traditional IRA due to the income limitation
AGI Phase-Out Ranges for 2019 IRAs
$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\text { Phase-out range }$
$\begin{array}{lcc}
\hline & \text { Single } & \text { Married filing jointly } \
\text { Traditional } & \$ 64,000-\$ 74,000 & \$ 103,000-\$ 123,000 \
\text { Roth } & \$ 122,000-\$ 137,000 & \$ 193,000-\$ 203,000
\end{array}$

Question

What is the maximum deductible contribution that Erick (age 32 and single) can make in 2019 to an Individual Retirement Account(s) if he earns $62,000 and is not covered by an employer-sponsored retirement plan?
A)$7,000 ($6,000 plus an extra $1,000 catch-up contribution) to a traditional IRA and zero to a Roth IRA.
B)$6,000 to a traditional IRA but only $1,500 additional to a Roth IRA
C)$6,000 to a traditional IRA
D)$4,500 to a traditional IRA due to the income limitation
AGI Phase-Out Ranges for 2019 IRAs
$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\text { Phase-out range }$
$\begin{array}{lcc} 
\hline & \text { Single } & \text { Married filing jointly } \
\text { Traditional } & \$ 64,000-\$ 74,000 & \$ 103,000-\$ 123,000 \
\text { Roth } & \$ 122,000-\$ 137,000 & \$ 193,000-\$ 203,000
\end{array}$

Quizplus · Accepted Answer

Since Erick is single, under 50, and earns $62,000, which is below the phase-out range for a traditional IRA contribution for singles in 2019 ($64,000-$74,000), he can contribute the maximum of $6,000 to a traditional IRA. He is not eligible for the catch-up contribution, which is for those 50 and older, and his income does not limit his contribution amount for a traditional IRA. There are no income limits for contributing to a traditional IRA, but there are for deducting those contributions if you are covered by a workplace retirement plan, which does not apply to Erick as he is not covered by one.

What Is the Maximum Deductible Contribution That Erick (Age 32 \quad

What Is the Maximum Deductible Contribution That Erick (Age 32 $\quad$