Dana, Age 31 and Unmarried, Is an Active Participant in a Qualified

question 75

Multiple Choice

Dana, age 31 and unmarried, is an active participant in a qualified retirement plan. Her AGI is $124,000. What amount, if any, may Dana contribute to a Roth IRA in 2018?

• A) $0.
• B) $3,225.
• C) $4,033.
• D) $5,500.
• E) None of the above

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Definitions:

Conception of the World

An individual or collective understanding and interpretation of the world around us, including beliefs about nature, society, and the universe.

Satisfice

To select the first alternative that is “good enough,” because the costs in time and effort are too great to optimize.

Bounded Rationality

A concept suggesting that individuals make decisions based on the limited information available to them and within the constraints of their cognitive capacity.

Optimizing

The process of making something as effective, perfect, or functional as possible, often by choosing the best option from a set of alternatives.