Sammy, Age 31, Is Unmarried and Is Not an Active

question 156

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 2012.The maximum amount that Sammy can deduct for a contribution to a traditional IRA is:

• A)$2,800.
• B)$3,500.
• C)$4,000.
• D)$5,000.
• E)None of the above.

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Definitions:

Property Tax

A levy on property that the owner is required to pay, usually based on the value of the property.

Benjamin Franklin

An American polymath who was a founding father of the United States.

Certain

Completely confident or sure about a situation or outcome.

Taxes

Mandatory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.