Question

Linda Perkins (56) shared a home all year with her son, Kevin (38), and Kevin's son, Jared (20). Linda and Kevin worked full time, and Jared was a part-time student. No one else lived in the home. Linda has earned income and an AGI of $29,694, and Kevin has earned income and an AGI of $23,157. Beth Wilson (17) is a dependent of her parents. She earned $1,475 wages from babysitting and $180 interest from her savings account. How much is the maximum she may contribute to a traditional or Roth IRA for 2018?

a. $0

b. $1,475

c. $1,655

d. $4,000

Answer 1

correct option is b. $1,475

Step-by-step explanation:

given data

Linda AGI = $29,694

Kevin AGI = $23,157

babysitting = $1,475

interest = $180

solution

as we know in 2018 year maximum contribution to IRA is the amount of wages earned by babysitting

and here we have given earned by babysitting is = $1475

so Highest contribution amount to IRA = $1,475

so correct option is b. $1,475