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26 September, 17:30

Your income is $75,000 per year. You cannot set up a ROTH IRA if you earn more than $95,000 per year. If your salary increases by 20% each year, how many more years (after this year) can you contribute before you no longer qualify to set up a ROTH account?

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  1. 26 September, 17:37
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    only one more year

    Explanation:

    Your income for the current year (year₀) = $75,000

    Next year's income (year₁) = $75,000 x 1.2 = $90,000

    Year 3's income (year₂) = $90,000 x 1.2 = $108,000

    You will only be able to contribute to a ROTH account during the next year (year₁), since your income for year₂ will be higher than $95,000.
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