Kerry is single and has AGI of $25,000 in 2017.During the year he contributes $5,000 to his Roth IRA.What is the amount of qualified retirement savings contributions credit to which he is entitled?
A)$200
B)$400
C)$800
D)$1,000

Question

Quizplus · Accepted Answer

A)For a single person with AGI over $20,000 but not over $31,000,the applicable percentage credit is 10%.The maximum amount on which to compute the credit is $2,000.Therefore,Kerry's credit is $2,000 × .10 = $200.

Kerry Is Single and Has AGI of $25,000 in 2017