Business, 25.01.2021 21:30 KingSavage5206
Lorna, 32 and single, is a full-time student who works as a tennis instructor earning $1,500 per month. After taking a personal finance class, she decides to open and make contributions to a Roth IRA. In 2018, she contributed $4,000 to her Roth IRA. Which of the following best describes Lorna's situation?
a) Lorna is eligible to receive a refundable retirement savings credit of $1,000 since she contributed more than $2,000 to her Roth IRA and has an annual income of $18,000.
b) Lorna is eligible to receive a nonrefundable retirement savings credit of $1,000 since she contributed more than $2,000 to her Roth IRA and has an annual income of $18,000.
c) Lorna is not eligible to receive the retirement savings credit because she is a full-time student.
d) Lorna is eligible to receive a retirement savings contribution credit of $4,000 for contributing to her Roth IRA.
Answers: 2
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Lorna, 32 and single, is a full-time student who works as a tennis instructor earning $1,500 per mon...
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