Answered

Westonci.ca is the ultimate Q&A platform, offering detailed and reliable answers from a knowledgeable community. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

A 65-year old individual has just retired after working for the same employer for 20 years. He will collect an annual pension benefit of $50,000, but is not yet ready to stop working. He has lined up a part-time job that will pay $3,000 this coming year. How much can he contribute to a Traditional Individual Retirement Account for his first year in retirement

Sagot :

abiolataiwo2015

Answer:

$3,000

Explanation:

Based on the information given we were told that he has a PART-TIME JOB THAT WILL PAY him the amount of $3,000 this coming year which means that the amount he can contribute to a TRADITIONAL INDIVIDUAL RETIREMENT ACCOUNT for his first year in retirement will be the EARNED INCOME of the amount of $3,000 which will therefore be his maximum INDIVIDUAL RETIREMENT ACCOUNT (IRA) contribution for this year.

Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Thank you for trusting Westonci.ca. Don't forget to revisit us for more accurate and insightful answers.