Anyone under the age of ___ who has earned income may open a traditional IRA.

The correct option revolves around the rules governing Individual Retirement Accounts (IRAs), specifically traditional IRAs. Historically, individuals could only contribute to a traditional IRA until they reached the age of 70 1/2.

However, the critical point here is that anyone under the age of 70 1/2 with earned income can indeed open a traditional IRA. This rule emphasizes that as long as the individual has earned income—which can include wages, salaries, commissions, bonuses, and self-employment income—there is no restriction preventing them from contributing to a traditional IRA until they reach the specified age threshold.

Following the Tax Cuts and Jobs Act of 2017, the age limit for contributions was adjusted in the case of Roth IRAs, but for traditional IRAs, the maximum age for contributions remains at 70 1/2, making this the crucial number to remember for understanding eligibility based on age.

This explains why the number 70 1/2 is significant in determining who can open and contribute to a traditional IRA. It’s important for individuals planning for retirement to stay informed about the age limits and income requirements associated with these types of individual retirement accounts.