Question

Mina, who is single, would like to contribute $6,000 to her Roth IRA. Her AGI is $130,000. What is the maximum amount that Mina can contribute

Answer 1

If Mina is not upto 50 years, the maximum amount she can contribute to her Roth IRA is $6,000 since she is also single and her AGI is $130,000

Step-by-step explanation:

Since Mina's Adjusted Gross Income (AGI) does not exceed $137,00 per annum, she is eligible for the Roth IRA. Otherwise, she will be contributing through the Traditional IRA. The difference between the two IRAs is that with Roth IRA, Mina pays taxes on the money she contributes into her account. Then, future withdrawals are tax-free. With the Traditional IRA, Mina's contributions are tax-free but the withdrawals are taxed.