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Lv 5
? asked in Business & FinanceInvesting · 9 years ago

Q. How much, if any, can Mary contribute to her IRA? (10 pts)?

Mary, a 65-y.o. taxpayer, has income of $30,000 consisting of $15,000 from SS, $10,000 interest/dividends, and $5,000 alimony. Can she contribute to an IRA?

Update:

Good shot, Keren, but not quite right. Please try again, and thanks for responding.

2 Answers

Relevance
  • 9 years ago
    Favorite Answer

    Hi There,

    Mary can contribute to an IRA using her alimony. As long as the alimony is considered taxable income (not child support) then she can contribute the $5000.00 to the IRA.

    Good luck,

    VP

  • ?
    Lv 7
    9 years ago

    Why would she want to?

    Poor thing is only living on 30K a year.

    Barely enough to afford medicine and food.

    It would be stupid for her to contribute to an IRA. She would be living on a fixed income.

    You know the rules:

    You can only use EARNED income to contribute to an IRA.

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