Realizing That Providing for a Comfortable Retirement Is Up to Them

question 33

Multiple Choice

Realizing that providing for a comfortable retirement is up to them, Jim and Julie commit to making regular contributions to their IRAs, beginning this year. Consequently, they each make a $2,000 contribution to their traditional IRa. If their AGI is $35,000 on their joint return, what is the amount of their credit for certain retirement plan contributions?

• A) $2,000
• B) $1,000
• C) $400
• D) $200

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Definitions:

Money Center Banks

Large banks that borrow from and lend to governments, other banks, and corporations.

Corporations

Legal entities that are separate from their owners, with the ability to own assets, incur liabilities, and engage in business activities.

Other Banks

Financial institutions that provide a range of services including deposits, loans, and investment products, distinct from the context's primary banking entity.

Clearing House Interbank Payments System

A network used by financial institutions to send and receive payments or securities in large volumes, typically for bank-to-bank transactions.