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The maximum annual contribution to a Roth IRA for an unmarried taxpayer who is age 35 is the smaller of $5,500 or the individual's compensation for the year.

A) True
B) False

User Yazh
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1 Answer

6 votes

Final answer:

The maximum annual contribution to a Roth IRA for an unmarried taxpayer age 35 is not $5,500 but has been updated to $6,000 or the individual's compensation for the year, whichever is less.

Step-by-step explanation:

The statement regarding the maximum annual contribution to a Roth IRA for an unmarried taxpayer who is age 35 being the smaller of $5,500 or the individual's compensation for the year is false.

Tax laws and contribution limits for Roth IRAs change over time, and for the years 2014 and 2015, the contribution limit was indeed $5,500 for individuals below age 50.

However, these limits are periodically adjusted for inflation, and the contribution limit has since increased. As of the most recent guidelines, an individual under the age of 50 can contribute up to $6,000 or their total compensation for the year, whichever is less.

User Birkenstab
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