Realizing That Providing for a Comfortable Retirement Is Up to Them

question 75

Multiple Choice

Realizing that providing for a comfortable retirement is up to them, Jim and Julie commit to making regular contributions to their IRAs, beginning this year. Consequently, they each make a $2,000 contribution to their traditional IRA. If their AGI is $35,000 on their joint return, what is the amount of their credit for certain retirement plan contributions?

• A) $2,000
• B) $1,000
• C) $400
• D) $200

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Definitions:

Ethical Moralists

Philosophers or thinkers who base their ethical theories on principles of moral goodness.

Utilitarians

Advocates of utilitarianism, the ethical theory that posits the greatest happiness for the greatest number as the foundation of morals and legislation.

Hedonism

The ethical theory that pleasure (in the sense of the satisfaction of desires) is the highest good and proper aim of human life.

Pleasure

A feeling of happiness, enjoyment, or satisfaction derived from an experience or activity.