SIE Exam Question 476: Answer and Explanation

Question: 476

An investor has placed a sum equal to 50% of the annual contribution limit into his traditional IRA. The investor is seeking to maximize his contributions to his retirement savings. Which of the following is correct?

• A. The investor may only contribute to a traditional IRA if one has been established.
• B. The investor may contribute a sum equal to 50% of the annual limit to a Roth IRA.
• C. The investor may contribute 100% of the annual limit to a Roth IRA.
• D. The investor may not contribute to a Roth IRA.

Correct Answer: B

Explanation:

B: The investor may contribute to both a traditional and Roth IRA in the same year. However, the amount contributed to both accounts may not exceed the annual contribution limit.