Mr Paul, Age 73 and Single, Earned a $150,000 Salary

question 96

Multiple Choice

Mr Paul, age 73 and single, earned a $150,000 salary (AGI) as a university professor. He no longer participates in the university's qualified retirement plan. Which of the following is true?

• A) Mr. Paul can make a $6,500 deductible contribution to a traditional IRA.
• B) Mr. Paul can make a $6,500 nondeductible contribution to a traditional IRA.
• C) Mr. Paul can make a $6,500 nondeductible contribution to a Roth IRA.
• D) Mr. Paul can't make an IRA contribution.

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Definitions:

Compensatory Damages

Monetary awards given to a plaintiff to compensate for loss, damage, or injury suffered due to another's breach of duty or negligence.

Implied Warranty

A legal guarantee that a product will meet certain standards of quality and reliability even if not explicitly stated in a contract.

UCC

The Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States, designed to standardize and harmonize sales and commercial transactions across state lines.

Express Warranty

A written guarantee by the seller about the quality or performance of a product, provided at the time of sale.