Intuit Academy Tax Practice Exam

Question: 1 / 400

What is the maximum contribution limit for a Traditional IRA in 2022 for individuals under 50?

$5,500

$6,000

The maximum contribution limit for a Traditional IRA in 2022 for individuals under 50 years of age is $6,000. This amount is part of the annual contribution limits set by the IRS to encourage retirement savings. Individuals can invest up to this limit in their Traditional IRA, providing an opportunity for tax-deferred growth on their investments until withdrawal during retirement.

The contribution limit can change over time due to factors such as inflation adjustments, which are periodically reviewed and updated by the IRS. In the context of retirement planning, adhering to these limits ensures individuals can maximize their tax advantages while saving for the future.

It's worth noting that individuals who are 50 years old or older are eligible for a catch-up contribution, allowing them to contribute an additional amount, which increased to $1,000 for a total of $7,000. However, since the question specifically addresses those under 50, the limit remains at $6,000.

Get further explanation with Examzify DeepDiveBeta

$6,500

$7,000

Next Question

Report this question

Download Intuit Academy Tax Practice Exam PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy