4. Travis, age 25, graduated from college and obtained a position as a tax accountant. He is ineligible to participate in his employer's retirement plan for one year. a. Assume that Travis has a starting salary of $55,000 for 2012 and does not participate in the employer's retirement plan. Is Travis eligible to establish a traditional tax-deductible IRA? Explain your answer. b. Assume the same facts in (a). Is Travis eligible to establish a Roth IRA? Explain your answer.

5. a traditional IRA and a Roth IRA have both similarities and differences. Compare and contrast (1) a traditional IRA with (2) a Roth IRA with respect to each of the following:

a. Income-tax treatment of IRA contributions and distributions.

b. Income limits for eligibility.

c. Determining how the IRA contributions are invested.

d. Eligibility, if any, of a spouse who is not in the paid labor force to make an IRA contribution.