The Maximum Tax Deductible Contribution to a Traditional IRA in 2019

question 40

True/False

The maximum tax deductible contribution to a traditional IRA in 2019 is $6,000 ($7,000 for a taxpayer age 50 or over).

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Definitions:

Previously-taxed Dollars

Funds that have already been subject to taxation, not requiring further tax upon withdrawal or transfer.

Qualified Pension Plan

A retirement plan that meets the requirements of the Internal Revenue Code and ERISA, offering tax advantages to the employer and employee.

Nontaxable

refers to income or financial transactions that are not subject to tax by the government.

Traditional IRAs

Retirement savings accounts that allow individuals to make pre-tax contributions, deferring taxes until the money is withdrawn.