Sammy,age 31,is Unmarried and Is Not an Active Participant in a Qualified

question 44

Multiple Choice

Sammy,age 31,is unmarried and is not an active participant in a qualified retirement plan.His modified AGI is $55,000 in 2016.The maximum amount that Sammy can deduct for a contribution to a traditional IRA is:

• A)$2,800.
• B)$3,500.
• C)$5,000.
• D)$5,500.
• E)None of the above.

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Definitions:

Management

Management involves the activities associated with running a company, such as controlling, leading, monitoring, organizing, and planning, to achieve business goals.

Account Receivable

Outstanding payments from customers to a company for delivered products or completed services.

Future Money

The concept of valuing funds scheduled to be received or paid out in the future, adjusted for time, inflation, or other financial factors.

Business Activity

Any action undertaken by individuals or companies, such as buying, selling, marketing, or production, aimed at generating income.