Brady MartnIRAs AssignmentBrady MartnIRAs Assignment1. Scott is a graduate student who works part-time and earned $15,000. He is not eligible to participate in his employer’s retirement plan because he is a part-time worker. Is Scott eligible to make a tax-deductible contribution to traditional IRA? a) Circle one: Yes (go to part b) No (go to part c)b) Why? - He is not doing an employment sponsored retirement program and his income is under $74,000, meaning he is eligible for the tax deductible. c) Why not?Is Scott eligible to make a contribution to Roth IRA? d) Circle one: Yes (go to part b) No (go to part c)e) Why? - His income is below $137,000f) Why not?2. Following the above question, assume Scott and Allison are now married and file a joint tax return. Allison is a high school teacher who earned $50,000 and is an active participant in the school district’s retirement plan. Is Allison eligible to make a tax-deductible contribution to traditional IRA? a) Circle one: Yes (go to part b) No (go to part c)b) Why? - Allison and Scott’s income is below the threshold.c) Why not?Is Allison eligible to make a contribution to Roth IRA? d) Circle one: Yes (go to part b) No (go to part c)e) Why?- She is under the $203,000 threshold.f) Why not?3. Assume that Scott graduates and the couple’s gross income is $140,000. Both Scott and Allison participate in their employers’ retirement plans. Is Scott eligible to make a contribution to Roth IRA? a) Circle one: Yes (go to part b) No (go to part c)b) Why? - Because their income is under the $203,000 threshold. c) Why not?Is Scott eligible to make a tax-deductible contribution to traditional IRA?d) Circle one: Yes (go to part b) No (go to part c)e) Why?f) Why not? - His income is above the $123,000 threshold. 4. What’s the maximum a person can contribute to traditional IRA in 2019?Please circle one: $5,500 $6,000 $6,5005. What is the main tax advantage of traditional IRA?- Tax Deferred Growth6. What is the main tax advantage of Roth IRA?- Tax Free