Question

In 2019, Susan (44 years old) is a highly successful architect and is covered by an employee-sponsored plan. Her husband, Dan (47 years old), however, is a PhD student and is unemployed. Compute the maximum deductible IRA contribution for each spouse in the following alternative situations. (Leave no answer blank. Enter zero if applicable.)

a. Susan’s salary and the couple’s AGI is $205,000. The couple files a joint tax return.

b. Susan’s salary and the couple’s AGI is $124,000. The couple files a joint tax return.

d. Susan’s salary and her AGI is $80,000. Dan reports $5,000 of AGI (earned income). The couple files separate tax returns.

Answer 1

(A) Susan’s salary and the couple’s AGI is $205,000. The couple files a joint tax return.

(ans) Maximum deductible IRA contribution Susan - $0 , Dan - $ 0

• ≥ $123,000 = NO DEDUCTION

(B) Susan’s salary and the couple’s AGI is $124,000. The couple files a joint tax return.

(ans) Maximum deductible IRA contribution Susan - $0 , Dan - $ 0

• > $103,000 but < $123,000	Partial deduction
  ≥ $123,000	No deduction

(D) Susan’s salary and her AGI is $80,000. Dan reports $5,000 of AGI (earned income). The couple files separate tax returns.

(ans) Maximum deductible IRA contributionSusan - $0 , Dan - $6000

• ≥ $10,000

  No deduction