What is the maximum amount Elizabeth may contribute to a Roth IRA with her income?

In determining the maximum amount Elizabeth may contribute to a Roth IRA, it is essential to consider the annual contribution limits set by the IRS. As of the 2023 tax year, individuals under the age of 50 can contribute up to $6,500 to a Roth IRA, and those aged 50 or older can make a catch-up contribution of an additional $1,000, leading to a total contribution limit of $7,500 for those aged 50 and over.

However, the contribution limit may also be affected by Elizabeth's modified adjusted gross income (MAGI). The ability to contribute to a Roth IRA begins to phase out at certain income levels depending on filing status. If Elizabeth’s income is below the specified threshold for her filing status, she can contribute the full amount allowed. If her income falls within the phase-out range, her contribution limit may be reduced, and if her income exceeds the upper threshold, she may not be able to contribute to a Roth IRA at all.

The provided answer of $4,647 indicates that Elizabeth's income may have been such that it limited her contribution capacity below the full annual limit. This could be due to her income being within the phase-out range, ultimately determining her maximum allowable contribution is $