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← Series 7: Opens & Maintains Customer Accounts
Series 7 practice questioneasyRetirement Accounts — Roth IRA Eligibility

Which of the following is a requirement for making contributions to a Roth IRA?

  1. AThe contributor must have earned income and fall below certain modified adjusted gross income (MAGI) limits✓ Correct answer
  2. BThe contributor must be under age 50
  3. CThe contributor must not have any other retirement accounts
  4. DThe contributor must be self-employed
Explanation

Why A — The contributor must have earned income and fall below certain modified adjusted gross income (MAGI) limits

To contribute to a Roth IRA, an individual must have earned income (such as wages, salaries, or self-employment income) and their modified adjusted gross income must be below certain thresholds set by the IRS. Unlike Traditional IRAs, there is no age limit for making Roth IRA contributions as long as the individual has earned income.

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