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

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Master the Investment Company and Variable Contracts Products Representative Test. Study with multiple choice questions and explanations. Get ready to excel in your Series 6 exam!

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Can an 85-year-old continue to make contributions to a Roth IRA?

No, because of age restrictions
Yes, provided they have earned income
Yes, but only up to certain limits
No, contributions are halted at age 70

The correct answer is: Yes, provided they have earned income

Individuals can continue to make contributions to a Roth IRA as long as they have earned income, which includes wages, salaries, or net earnings from self-employment. There is no age limit on contributions to a Roth IRA, allowing even those in their 80s or beyond to contribute, as long as they meet the earned income requirement. While there are contribution limits for Roth IRAs based on one's modified adjusted gross income and tax filing status, as well as limits on the total amount contributed across all IRAs, the critical factor here is the presence of earned income. This flexibility allows older individuals to continue funding their retirement accounts to help manage expenses and taxes in retirement. Age restrictions do not apply to Roth IRA contributions, and options discussing age limitations or halting contributions at a certain age misrepresent the rules governing these accounts.