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 2014 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

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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 2014 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