Homework Answers
Answer
- The correct answer is Option ‘A’ $ 0 is the maximum deductible contribution that he can make for 2018.
This is because he will reach age of 70 ½ age in Jan 2018. The traditional IRA closes the door to new contributions once you reach 70 ½ years of age [even if you are still working].
- General limit for 2018 is $ 5,500 [$ 6,500 if you’re older than 50 years as catch up contribution].
- No contribution is acceptable when the age reached is 70 ½ years.
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