Amy is single. During 2015, she determined her adjusted gross income was $12,000. During the year, Amy also contributed $2,500 to a Roth IRA. What is the maximum saver's credit she may claim for the year?

A. $1,250

B. $2,500

C. $1,000

D. $0

Answer: C

Which of the following taxpayers is most likely to qualify for the saver's credit?

A. A low AGI taxpayer who does not contribute to any qualified retirement plan.

B. A low AGI taxpayer who contributes to her employer's 401(k) plan.

C. A high AGI self-employed taxpayer.

D. A high AGI employee who does not contribute to any qualified retirement plan.

Answer: B

Kathy is 60 years of age and self-employed. During the year she reported $400,000 of revenues and $100,000 of expenses relating to her self-employment activities. If Kathy has no other retirement accounts in her name, what is the maximum amount she can contribute this year to a simplified employee pension (SEP) IRA?

A. $52,000

B. $56,500

C. $57,746

D. $288,933

Answer: A

Which of the following statements concerning individual 401(k)s is false?

A. In general, individual 401(k)s have higher administrative costs than SEP IRAs.

B. Employees cannot participate in individual 401(k)s.

C. Individual 401(k)s are available only to self-employed taxpayers with 100 or fewer employees.

D. Individual 401(k)s have contribution limitations.

Answer: C