Question

1. what happens to contribution limits for a roth ira at higher income levels? a. roth iras are not available to high - income earners b. contribution limits remain the same regardless of income c. contribution limits are phased out at higher income levels d. contribution limits increase at higher income levels

Explanation:

Roth IRA contribution limits are not fixed for all income levels. High - income earners do not have unlimited contribution rights. The contribution limits do not remain the same (option b is wrong) and they do not increase (option d is wrong). Roth IRAs are not completely unavailable (option a is wrong). Instead, contribution limits are phased out at higher income levels. This means that as income rises above a certain threshold, the amount that can be contributed to a Roth IRA gradually decreases until it reaches zero.

Answer:

c. Contribution limits are phased out at higher income levels