Question

Arturo and Josephina are married with salaries of $47,000 and $48,000, respectively. Their combined AGI is...

Arturo and Josephina are married with salaries of $47,000 and $48,000, respectively. Their combined AGI is $101,000. Josephina is an active participant in her company's qualified pension plan while Arturo is not. Determine Arturo and Josephina’s combined IRA contribution and deduction amounts?

Maximum Maximum

Contribution Deduction

According to the test bank 2016 the answer is (d). Please explain why thanks

Homework Answers

Answer #1

Arturo and Josephina are married with salaries of $47,000 and $48,000, respectively.

Their combined AGI is $101,000.

here in individual retirement account any one can contribute to the ira account.

it is not based on cost of living as it can be contribute by all age limit 70.5 years.

in 2016 ira contribution is $5500 per individual to be contribute age less than 50 years.

here both Arturo and Josephina are contributing about $5500 each .

deduction amount is contribution limit i.e $5500 per individual or 100% of earning income.

$5500 deduction for one , for two above married persons get maximum contribution and deduction will be of $11000.

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