SIE practice questionmediumAccount Types – Retirement Account Eligibility
Who is eligible to contribute to a traditional IRA?
- ACorporations
- BIndividuals with only investment income
- CA minor without taxable compensation
- DA person with taxable compensation or a qualifying spouse✓ Correct answer
Explanation
Why D — A person with taxable compensation or a qualifying spouse
Traditional IRA contribution eligibility is generally based on taxable compensation, not on being below an income limit. Income and workplace-plan coverage can limit whether a contribution is deductible, not whether it may be made. Under the spousal IRA rules, a spouse filing jointly may also contribute when the couple has sufficient combined compensation; investment income alone is not compensation.
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