Kevin,single,is an Employee of the Colonial Company and Is an Active

question 76

Multiple Choice

Kevin,single,is an employee of the Colonial Company and is an active participant in its pension plan.Kevin's adjusted gross income for the current year is $51,000.Kevin contributes $1,000 to his conventional individual retirement account.Which of the following statements about Kevin contributions and deduction amounts is (are) true?
I.He is allowed to deduct his $1,000 contribution to his conventional IRA.
II.Kevin can also contribute but not deduct $4,500 to his Roth IRA.

• 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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Definitions:

Sustained Competitive Advantage

The long-term ability of a company to remain more competitive than its rivals by maintaining unique value propositions.

Training And Reward

The process of providing employees with the necessary skills for their roles and incentivizing them with various forms of compensation or recognition.

Talent

The innate abilities, skills, and expertise that individuals possess, which can be leveraged to meet organizational goals.

Fringe Benefits

Additional benefits offered to employees beside their basic salary, such as health insurance, paid vacations, or retirement plans.