What is the maximum deductible contribution that Erick (age 32 and single) can make in 2011 to an Individual Retirement Account(s) if he earns $61,000 and is not covered by an employer-sponsored retirement plan?
A) $6,000 ($5,000 plus an extra $1000 catch-up contribution) to a traditional IRA and zero to a Roth IRA.
B) $5,000 to a traditional IRA but only $2,000 additional to a Roth IRA
C) $5,000 to a traditional IRA
D) $2,500 to a traditional IRA due to the income limitation

Question

Quizplus · Accepted Answer

Since Erick is under 50 and not covered by an employer-sponsored retirement plan, he can contribute the full amount ($5,000 in 2011) to a traditional IRA without any income limitation affecting his contribution limit. The catch-up contribution and income limitations for Roth IRAs do not apply in his situation.

What Is the Maximum Deductible Contribution That Erick (Age 32