Question

The maximum amount of a deductible IRA in 2019 for a taxpayer under the age of 50 is $(1), and it is a deduction (2) (for/from) AGI.

a) 6,000; for
b) 5,000; from
c) 7,000; for
d) 8,000; from

Answer 1

The maximum amount of a deductible IRA in 2019 for a taxpayer under the age of 50 is $6,000, and it is a deduction from AGI.

Step-by-step explanation:

The correct answer is a) $6,000; for.

A deductible IRA is a type of individual retirement account that allows individuals to contribute pretax income, up to specific annual limits, towards investments that can grow tax-deferred. For taxpayers under the age of 50, the maximum amount they can contribute to a deductible IRA in 2019 is $6,000.

By contributing to a deductible IRA, taxpayers can deduct the amount of their contributions from their adjusted gross income (AGI), which can help reduce their taxable income.