Elvin is single, age 35, and has total wages of $69,000. His adjusted gross income is also $69,000 before any IRA contribution. Elvin works for the Murphy Corporation, which sponsors a retirement plan that Elvin participates in. In addition, Elvin contributes $6,000 to his IRA account. What amount can Elvin deduct on his 2020 income tax return?

• A.$6,000

• B.$2,400

• C.$3,600

• D.$0

Joe and Denise are married and both under age 50. They each have an IRA. During the current year, Joe earned $2,500 and Denise earned $40,000. Neither is covered by an employer retirement plan. What is the maximum amount they can contribute to the two IRAs for the year?

• A.$7,000

• B.$14,000

• C.$12,000

• D.$6,000

Taxable compensation for IRA purposes excludes all of the following EXCEPT

• A.Alimony and separate maintenance payments.

• B.Pension or annuity income.

• C.Earnings and profits from rental income, interest income, and dividend income.

• D.Deferred compensation.

Betty, who is single, had income in 2020 totaling $2,500. She is 35 years of age, and the income she received consisted of $2,000 earned from clerical work and $500 from interest income. What was the maximum amount of money that she could have contributed during the year to a traditional IRA?

• A.$0

• B.$2,000

• C.$2,500

• D.$500

For the year, Charles and Mary, both under age 50, filed a joint income tax return. Charles earned $35,000 and Mary earned $250 for that year. Mary contributed $6,000 to a spousal IRA. What is the maximum amount Charles can contribute to his own IRA?

• A.$250

• B.$0

• C.$6,000

• D.$7,000

Ms. Seburn had the following during the current year:

Taxable alimony received	$ 4,000
Wages	12,000
Net loss from self-employment	(10,000)
Interest income	3,000

For the purpose of an IRA, Ms. Seburn had compensation for the current year of

• A.$2,000

• B.$16,000

• C.$19,000

• D.$6,000