Who is eligible to purchase an IRA?

A. Anyone who does not have a company-sponsored retirement plan
B. Anyone who has earned income
C. Only people who participate in their company retirement plan
D. Anyone who has an established 401(k)



Answer :

Final answer:

Individuals with earned income are eligible to purchase an IRA regardless of their participation in company retirement plans, with contribution limits varying annually.


Explanation:

Anyone who has earned income is eligible to purchase an Individual Retirement Account (IRA). Whether or not you have a company-sponsored retirement plan like a 401(k) or 403(b), you can set up an IRA and contribute money to it. Contribution limits vary each year, with the 2020 limit being $6,000. Individuals making less than a certain income threshold may also receive a tax deduction for their contributions.


Learn more about Individual Retirement Accounts (IRAs) here:

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