Donna Is Single and Earns $30,000 Annually

question 20

Multiple Choice

Donna is single and earns $30,000 annually.She is covered under her employer's retirement plan.Donna would like to start a traditional IRA and contribute $3,000 this year.Which of the following describes her ability to establish a traditional IRA and the tax treatment of her contribution?

• A)Her contribution is fully tax deductible.
• B)Her contribution is partially tax deductible.
• C)No portion of the contribution is tax deductible.
• D)Donna is not eligible to establish a traditional IRA,so no contribution can be made.

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Definitions:

Party In Breach

The individual or entity that fails to fulfill their contractual obligations, thus violating the agreement.

Sales Contract

An agreement between a buyer and seller outlining the terms and conditions of the sale of goods or services.

Risk Of Loss

The possibility that an asset or investment's value will decrease or will be irretrievably damaged or lost.

Insurance Coverage

A contractual agreement where an individual or entity receives financial protection or reimbursement against losses from an insurance company.