During 2015,Marcia,who Is Single and Is Covered Under a Pension

question 47

Multiple Choice

During 2015,Marcia,who is single and is covered under a pension plan at work,contributes $5,500 into a Roth IRA.If her AGI is $65,000,which of the following is true?

• A)All of the contribution is deductible.
• B)None of the contribution is deductible.
• C)She must withdraw all of the contribution immediately since she is covered under a plan at work.
• D)Only 60% of the contribution is deductible since her AGI exceeds $61,000 by $4,000 and her maximum contribution is phased out by 40%.

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Definitions:

Private Business

A business owned and operated by private individuals or groups, rather than by the state or public, typically aiming to generate profit.

Federal Government

The national government of a federated state, which holds the authority to govern at a level above individual states or provinces.

Personal Income Tax

A tax that governments impose on individuals based on their earnings or income.