Final answer:
Jane's ability to make a $6,000 deductible contribution to a traditional IRA depends on the income thresholds and phase-out ranges set by the IRS for that tax year, which may limit or disallow her contribution based on her income level.
Step-by-step explanation:
The question at hand deals with whether Jane, a 40-year-old single individual who earns $78,000 with a modified adjusted gross income of $76,000, can make a $6,000 deductible contribution to a traditional IRA. As an active participant in a qualified plan with her employer, the determination of her ability to make a deductible contribution depends on the IRA contribution limits and phase-out ranges set by the Internal Revenue Service (IRS) for the given tax year.
IRS guidelines often have income thresholds that determine the deductibility of IRA contributions for active participants in employer-sponsored plans. If Jane's income exceeds the phase-out range, her ability to make a deductible contribution may be limited or disallowed.
As tax laws and limits can change annually, the specific answer depends on the threshold for the tax year in question. However, since this is an example and no specific tax year's phase-out range is provided, we cannot definitively answer True or False.