Chapter 9 - Question 4 :

Help me to explain this question. Thank you

Dave, single and age 53, is a participant of his employers qualified profit sharing plan. For the current year he received a forfeiture allocation of $250, but the employer did not make any other contribution for the year. Dave would like to make an IRA contribution. If Daves AGI is $79,000 (all comprised of W-2 earnings and portfolio income), what is the maximum IRA contribution Dave can make for 2018?

A. $0

B. $3,000

C. $5,500

D. $6,500