Question

An individual working part-time has an annual income of $25,000. If this individual has an ira, what is the maximum deductible ira contribution allowable?

Answer 1

The maximum deductible ira contribution allowable is $25,000.

An IRA is what?

An individual retirement account (IRA) is a savings account with tax benefits that people can open to save money and make long-term investments. An IRA is made to encourage people to save for retirement, similar to a 401(k) account that an employee receives as a perk from their company.

Anyone with a source of income can open an IRA and take advantage of the tax advantages that these accounts provide. Individual retirement accounts (IRAs) are termed as such because they can be opened by individuals without involving their employer, unlike 401(k)s. Banks, financial firms, internet brokerages, personal brokers, and banks are all options for opening an IRA.

Learn more about an individual retirement account (IRA) with the help of the given link:

brainly.com/question/13032524

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