What Is the Maximum Deductible Contribution That Erick (Age 32 $\quad$

question 11

Multiple Choice

What is the maximum deductible contribution that Erick (age 32 and single) can make in 2019 to an Individual Retirement Account(s) if he earns $62,000 and is not covered by an employer-sponsored retirement plan?

• A)$7,000 ($6,000 plus an extra $1,000 catch-up contribution) to a traditional IRA and zero to a Roth IRA.
• B)$6,000 to a traditional IRA but only $1,500 additional to a Roth IRA
• C)$6,000 to a traditional IRA
• D)$4,500 to a traditional IRA due to the income limitation
• AGI Phase-Out Ranges for 2019 IRAs
• \(\quad \)\(\quad \)\(\quad \)\(\quad \)\(\quad \)\(\quad \)\(\quad \)\(\quad \)\(\quad \)\(\quad \)\(\quad \)\(\text { Phase-out range }\)
• \(\begin{array}{lcc}
• \hline & \text { Single } & \text { Married filing jointly } \\
• \text { Traditional } & \$ 64,000-\$ 74,000 & \$ 103,000-\$ 123,000 \\
• \text { Roth } & \$ 122,000-\$ 137,000 & \$ 193,000-\$ 203,000
• \end{array}\)

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Definitions:

Maslow's Theory

A hierarchy of human needs conceptualized by Abraham Maslow, suggesting that people are motivated to fulfill basic needs before moving on to other, more advanced needs.

Higher Motives

Desires that go beyond basic physiological needs, such as aspirations for achievement, self-actualization, and the search for meaning.

Extremely Stimulating Activities

Actions or tasks that highly engage and arouse interest, attention, or excitement.

Arousal Theory

A theory suggesting that people are motivated to maintain an optimal level of arousal, neither too high nor too low, which can affect performance and mood.