Who is eligible to contribute to a Traditional IRA?

• A. Taxable withdrawals
• B. Anyone with earned income
• C. Tax-deductible contributions
• D. Tax-deferred on interest and return on investments

Answer: (B)

Having earned income is what allows someone to contribute to a Traditional IRA. Earned income includes wages, salaries, commissions, tips, and net earnings from self-employment. If you have compensation from work, you can contribute up to the annual limit to a Traditional IRA, regardless of other factors, though deduction eligibility can depend on income and whether you or a spouse participate in a workplace retirement plan. Income from investments, pensions, or Social Security doesn’t count as earned income, so those sources don’t open eligibility. The other statements describe tax treatment or the nature of distributions, not who is allowed to contribute.