Joyce, Age 39, and Sam, Age 40, Who Have Been

question 5

Multiple Choice

Joyce, age 39, and Sam, age 40, who have been married for seven years, are both active participants in qualified retirement plans.Their total AGI for 2012 is $120,000.Each is employed and earns a salary of $65,000.What are their combined deductible contributions to traditional IRAs?

• A)$0.
• B)$3,000.
• C)$4,000.
• D)$8,000.
• E)None of the above.

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Definitions:

Charles Darwin

A British naturalist of the 19th century best known for his contributions to the science of evolution, particularly the theory of natural selection.

Conditioned Stimulus

A conditioned stimulus is a previously neutral stimulus that, after association with an unconditioned stimulus, comes to elicit a conditioned response.

Salivates

The process of producing saliva, a digestive fluid, in response to the presence of food or the anticipation of eating.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, eventually comes to trigger a conditioned response in a subject.