What is the deductible ira contribution


Question: Sophia and Grace, both age 42, are married and file a joint tax return. Sophia participates in her company's 401(k) plan but Grace's employer does not offer a retirement plan. Which of the following is true regarding the ability for either to make a deductible IRA contribution? Question options: Because Sophia participates in a 401(k) plan, neither can make a deductible contribution. Sophia can make a deductible IRA contribution but must forfeit the 401(k) match. Both may make a deductible IRA contribution if their AGI is under a certain amount. Because Grace's employer does not offer a retirement plan, she cannot make a deductible IRA contribution.

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Accounting Basics: What is the deductible ira contribution
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