Investment Company and Variable Contracts Products Representative (Series 6)Practice Exam

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What is the maximum contribution to an IRA for someone who is 50 years or older?

$5,000
$6,000
$7,000
$8,000

The correct answer is: $6,000

The maximum contribution to an Individual Retirement Account (IRA) for someone who is 50 years or older is $7,000. This figure includes the standard contribution limit of $6,000 for the year, along with the additional catch-up contribution of $1,000 that individuals aged 50 and older are allowed to make. This catch-up contribution is designed to help older individuals save more as they approach retirement, allowing them to bolster their retirement savings during these crucial years. The total contribution limit for those under 50 years of age remains lower, at $6,000, which does not include the catch-up provision. Therefore, the correct maximum contribution for an individual who is 50 or older is $7,000, not $6,000 or any other lower amount.