Series 7 Exam Question 408: Answer and Explanation

Question: 408

What is the maximum contribution for a 56-year-old investor into a traditional IRA each year?

• A. $4,000
• B. $5,000
• C. $6,000
• D. $7,000

Correct Answer: D

Explanation:

D. In most instances, individuals may invest up to $6,000 per year in an IRA ($7,000 if they're age 50 or older). The maximum investment occasionally changes due to inflation, so please check the IRS website for the latest info.