Answer: No contribution can be made
Explanation:
The options to the question are:
a. No contribution can be made
b. A contribution can be made based only on the income received from the trust fund.
c. A contribution can be made based only on the alimony payments received
d. A contribution can be made based on both the income received from the trust fund and the alimony payments received
From the question, we are informed that a divorced woman with 2 young children has a small trust fund that gives her $2,500 a year in income and that she collects another $2,500 per year in alimony payments.
Based on the above analysis, the woman cannot make a contribution to an Individual Retirement Account this year.
