Question

It is 2017. Bob and Nancy are married and file a joint return. They are both...

It is 2017. Bob and Nancy are married and file a joint return. They are both under age 50 and employed, with wages of $50,000 each. Their total AGI is $110,000. Neither of them is an active participant in a qualified plan. What is the maximum traditional IRA deduction they can take for the current year?

$0

$5,500

$7,700

$11,000

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Answer #1

Answer :-

Last Option . $11,000 is correct .

Explanation :-

Here we need to find out the Total deduction .

Total deduction = Maximum contribution * number of persons

= $5,500 * 2 persons

= $11,000

Total deduction = $11,000

Note :-

For 2015, 2016, 2017 and 2018, your aggregate commitments to the majority of your conventional and Roth IRAs can't be more than: $5,500 ($6,500 in case you're age 50 or more established), or your assessable pay for the year, if your pay was not as much as this dollar limit.

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