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Leonard is single, has compensation of $18,000 for 2018, and made a $300 contribution to his traditional IRA. Which of the following statements is correct? Leonard can make a $5,200 nondeductible contribution to his Roth IRA and a $5,500 deductible contribution to his traditional IRA. O A. O B. Leonard can make a $5,200 nondeductible contribution to his Roth IRA O C. Leonard can make an additional $5,200 deductible contribution to his traditional IRA. O D. Leonard cannot make any contribution to his Roth IRA.

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  • The correct answer = Option ‘C’ Leanord can make an additional $ 5,200 deductible contribution to his traditional IRA.

This is because the maximum deductible contribution for traditional IRA for 2018 is $ 5,500 [$6,500 if 50 years or older].

He has already contributed $ 300.

Hence, he can still contribute $ 5,200 [5500 – 300 = $ 5,200] as deductible contribution to his traditional IRA.

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