Question

Donald, a 40-year-old married taxpayer, has a salary of $55,000 and interest income of $6,000. He is an active participant in his employer's pension plan. What is the maximum amount Donald can contribute to a Roth IRA? a) $550 b) $3,000 c) $5, 500 d) $610 e) $1, 220

Answer 1

Answer:

The lowest limit in 2016 for Roth IRA was $5,500 for age below 50

Explanation:

Nowadays the lowest limit of the Roth IRA for a person who is aged below 50 years is $6000 and if the person is above 50 years then he can contribute to the maximum $7000. So the answer here is option C (according to the Roth IRA 2018) but remember for 2020 its $6000 for age below 50 and $7000 if you are age above 50.