Alex Is 37 Years Old, Single and Employee of Ellis

Multiple Choice

Alex is 37 years old, single and employee of Ellis Company. I. If Alex is an active participant in the company's pension plan, he is allowed to make a contribution to his IRA account only if his adjusted gross income is less than $60,000. II. If Alex is an active participant in the company's pension plan, and has adjusted gross income of $65,000, he is allowed to contribute $5,500 to his IRA account, but he is only allowed a deduction of $2,750 for the contribution because his adjusted gross income is between $60,000 - $70,000.

A) Only statement I is correct
B) Only statement II is correct
C) Both statements are correct.
D) Neither statement is correct.