Question

Which of the following situations will classify a person as an active participant? A person who...

Which of the following situations will classify a person as an active participant?
A person who makes nine deductible contributions to a trust?
A person his spouse is eligible to participate in a qualified retirement plan but chooses not to?
A person who is considered to be an active participant?
A self-employed person who maintains a KEOGH plan, but does not make a contribution during the current taxable year?
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Answer #1

Answer option (a) is correct That A person who makes nine deductible contributions to a trust.
Because An individual will considered an active participant if he participate in a trust described under IRC § 501(c)(18) for the year. An active participant is a person who receives benefits under an employer sponsored retirement plan or participates in a retirement plan. This participation affects his eligibility to take a deduction for a contribution to a traditional IRA on his federal tax return.

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