During 2015 Jacob, a 19 year old full-time student, earned $4,500 during the year and was not eligible to participate in an employer-sponsored retirement plan. The general limit for deductible contributions during 2015 is $5,500. How much of a tax-deductible contribution can Jacob make to an IRA?

During 2015 Jacob, a 19 year old full-time student, earned $4,500 during the year and was not eligible to participate in an employer-sponsored retirement plan. The general limit for deductible contributions during 2015 is $5,500. How much of a tax-deductible contribution can Jacob make to an IRA?

During 2015 Jacob, a 19 year old full-time student, earned $4,500 during the year and was not eligible to participate in an employer-sponsored retirement plan. The general limit for deductible contributions during 2015 is $5,500. How much of a tax-deductible contribution can Jacob make to an IRA?


A. $0 (Full-time students are not allowed to participate in IRAs)

B. $500

C. $4,500

D. $5,500


Answer: C


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