"For the past 5 years, an individual earning $40,000 per year, who was not covered by another retirement plan, has made annual contributions to an Individual Retirement Account. That individual has changed jobs at the same salary and has been included in that company's qualified retirement plan. Which statement is TRUE?"

The available options are:

A. Annual contributions to the Individual Retirement Account must cease

B. Annual contributions to the Individual Retirement Account can continue and are an adjustment to income each year

C. Annual contributions to the Individual Retirement Account can continue but no adjustment to income is allowed

D. The employee has 60 days to roll over the funds from the IRA to the qualified plan in order to maintain tax deferred status

Annual contributions to the Individual Retirement Account can continue and are an adjustment to income each year

Explanation:

Given that, the individual involved makes $40,000 per year, therefore, the IRA contribution is tax deductible. This is because, the phase out range in 2020 for singles, where the contribution is not tax deductible is an income of above $75,000 per year, which is exactly between $65,000 - $75,000.

Hence, in this case, the correct answer is option B. Annual contributions to the Individual Retirement Account can continue and are an adjustment to income each year

i believe the answer would have to be a dependable person

answerskimming;