Kerry Is Single and Has AGI of $25,000 in 2014

question 113

Multiple Choice

Kerry is single and has AGI of $25,000 in 2014.During the year he contributes $5,000 to his Roth IRA.What is the amount of qualified retirement savings contributions credit to which he is entitled?

• A)$200
• B)$400
• C)$800
• D)$1,000

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Definitions:

Interest Rates

The amount of a loan that is incurred as interest by the borrower, customarily specified as an annual percentage of the loan in question's remaining value.

Invest

Diverting money with the hopes of producing an income or realizing a profit.

Crowding Out

The phenomenon where increased government spending leads to a reduction in private sector investment or spending due to higher interest rates or other factors.

Budget Deficit

A budget deficit occurs when a government's expenditures exceed its revenues during a specific period, leading to the need for borrowing or using saved reserves.