Chi Is Single and an Employee of Federal Company

question 15

Multiple Choice

Chi is single and an employee of Federal Company.Chi's adjusted gross income for the current year is $63,000.Chi would like to make the maximum contribution to his individual retirement account this year.Which of the following statements about Chi's contribution and deduction amounts is (are) true?
I.He is not allowed to make an IRA contribution because his adjusted gross income is greater than $59,000.
II.If Federal Company does not have a qualified pension plan; Chi can contribute and deduct a maximum of $5,500 to his IRA account.

• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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A psychologist best known for his contributions to psychometrics and the development of factor analysis in psychological testing.

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