What is the maximum amount Elizabeth can contribute to a Roth IRA given her income?

For the tax year 2023, individuals under the age of 50 are permitted to contribute a maximum of $6,500 to a Roth IRA, while those who are 50 or older can contribute an additional catch-up amount, bringing the total to $7,500.

The correct choice, which indicates a maximum contribution limit, depends on Elizabeth's age and her modified adjusted gross income (MAGI). If her income exceeds the thresholds set by the IRS, her contribution limit may be reduced or phased out. For example, if her MAGI is above certain amounts (for single filers, it's phased out starting at $138,000 and completely phased out at $153,000), she may be limited to a lower contribution amount.

Considering that the selected answer is $4,647, this is indicative of a situation where her income has been reduced below the maximum allowable limit for a full contribution, possibly due to the phase-out rules for high earners. Therefore, in this case, $4,647 would accurately reflect the maximum she can contribute based on her income status under those phase-out provisions.

In summary, the correct figure is a result of either an age threshold affecting her contribution limit or income levels impacting her full participation in