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11 April, 16:42

During year 2018, Rebekah, a 20-year-old full-time student, earned $3,400 during the year and was not eligible to participate in an employer-sponsored retirement plan. The general limit for deductible contributions during 2018 is $5,500. How much of a tax-deductible contribution can she make to an IRA?

$0 (Full-time students are not allowed to participate in IRAs)

$3,400

$5,500

$8,900

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Answers (1)
  1. 11 April, 20:18
    0
    The answer is: $3,400

    Explanation:

    Rebekah can contribute the full $3,400 she made during 2018 to her individual retirement account (IRA). Tax deductible contributions are limited to $5,500 or less per year, or in cases like Rebekah's, if the total amount of earned income is below $5,500 it can be fully contributed to her account.
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