Thomas maintains an IRA account.During the year he wins $10,000 in the state lottery and contributes it to his IRA account.Because he is an active participant in a qualified pension plan,he does not take a deduction for any part of his contribution.At the end of 2013 the total assets in the account are $30,000.Thomas is subject to a penalty on his contribution of
A)$ -0-
B)$ 180
C)$ 270
D)$1,000
E)$1,800

Question

Quizplus · Accepted Answer

The Answer of Thomas maintains an IRA account.During the year he wins $10,000 in the state lottery and contributes it to his IRA account.Because he is an active participant in a qualified pension plan,he does not take a deduction for any part of his contribution.At the end of 2013 the total assets in the account are $30,000.Thomas is subject to a penalty on his contribution of
A)$ -0-
B)$ 180
C)$ 270
D)$1,000
E)$1,800

Thomas Maintains an IRA Account