Question

Dori is 58 years old and retired in 2019. She receives a pension of $25,000 a year and no other income. She wishes to put the maximum allowed into an IRA. How much can she contribute to her IRA?

Answer 1

$7,000 per year

Step-by-step explanation:

Since Dori is over 50 years old, she can contribute up to $7,000 per year to her IRA or Roth IRA account. If she was a little younger, less than 50 years old, her maximum contribution would have been $6,000 per year.

The IRS sets the maximum contribution limits that anyone can contribute to an IRA account, and that limit was set for 2019 and continues to be valid.