Series 6 Practice Exam 2025 – Comprehensive All-in-One Guide to Master Investment Company and Variable Contracts Products

The maximum contribution an individual can make to a traditional IRA or a Roth IRA is subject to annual limits set by the IRS. As of 2023, individuals under 50 years of age can contribute up to $6,000. However, since the individual in this scenario is 55 years old, they qualify for a "catch-up" contribution, which allows those aged 50 and older to contribute an additional amount to their IRA.

For 2023, the catch-up contribution limit is $1,000. Therefore, for someone who is 55 years old, the maximum total contribution to an IRA would include the standard limit of $6,000 plus the catch-up contribution of $1,000, resulting in a maximum contribution of $7,000. However, it's important to note that the options provided might have a typographical error regarding the relevant year or the specific catch-up amount, as the answer indicates $6,500 instead of the correct $7,000.

Therefore, the option that reflects the prevailing rules for individuals over 50 years old aiming to maximize their retirement savings is the appropriate reasoning leading to this maximum contribution amount.