Sal, single and age 72, is a participant of his employer’s qualified profit-sharing plan. For the current year he received a profit-sharing contribution of $1,200. Sal would like to make a deductible IRA contribution. If Sal’s AGI is $49,000 (comprised of $15,000 of W-2 earnings, and the rest as Social Security and portfolio income), what is the maximum deductible IRA contribution Sal can make for 2020? a. $0. b. $3,000. c. $6,000. d. $7,000.
Sal, single and age 72, is a participant of his employer’s qualified profit-sharing plan. For the current year he received a profit-sharing contribution of $1,200. Sal would like to make a deductible IRA contribution. If Sal’s AGI is $49,000 (comprised of $15,000 of W-2 earnings, and the rest as Social Security and portfolio income), what is the maximum deductible IRA contribution Sal can make for 2020? a. $0. b. $3,000. c. $6,000. d. $7,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sal, single and age 72, is a participant of his employer’s qualified profit-sharing plan. For the current year he received a profit-sharing contribution of $1,200. Sal would like to make a deductible IRA contribution. If Sal’s AGI is $49,000 (comprised of $15,000 of W-2 earnings, and the rest as Social Security and portfolio income), what is the maximum deductible IRA contribution Sal can make for 2020?
a. $0.
b. $3,000.
c. $6,000.
d. $7,000.
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