During 2017, Carl (a single taxpayer) has a salary of $91,500 and interest income of $11,000. Calculate the maximum contribution Carl is allowed for an educational savings account. a. $0 b. $400 c. $1,000 d. $2,000 e. Some other amount

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Daisy Schmidt

14 November, 07:10

During 2017, Carl (a single taxpayer) has a salary of $91,500 and interest income of $11,000. Calculate the maximum contribution Carl is allowed for an educational savings account. a. $0 b. $400 c. $1,000 d. $2,000 e. Some other amount

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Ernesto Skinner · Answer 1

Option a is the answer i. e $0

Explanation:

Basically, Mr Carl who has a salary of $91,500 and interest income of $11,000.

From the US system, one is not allowed or simply put it is not mandatory on you to have a contribution towards your educational savings, IT IS NOT. such action is dependent on individuals volition, it is the individual who has a better plan will think of having a savings for education by way of attending college.

Moroever, in the US, students are enttled to financial aid to support their education while in college. If financial aid is available for students, then there wont be any need for them to have a savings towards their education.

Llike I said, having an educaional savings account is depenedent on the individual and his plans towards college. Hence, Mr Carl has no rule or law that says he must have a maximum or minimum in his educational savings account and as such the answer is 0$.