Answer:
e. "Sally and Patrick could each contribute $6,500 to a Roth IRA" and "Patrick could contribute $5,500 to a traditional deductible IRA".
Explanation:
Although one can have both a 401(k) and an individual retirement account (IRA) at the same time but it's not always advisable because the one's income may be a limiting factor to tax breaks received. hence it's not advisable for Sally to have a traditional deductible IRA because Sally is already covered at work by 401(k).
In the case of Patrick, if one's income is under a certain level or if one (or one's spouse) don't have an employer-sponsored retirement plan, the Traditional IRA contribution is fully deductible.
So , you (or your spouse) do have a 401(k) or pension plan, the tax-deductible portion of your IRA contribution may be limited.
