Question

John, a single man, is not covered by another qualified plan and earned $120,000 at his...

John, a single man, is not covered by another qualified plan and earned $120,000 at his job in 2017. How much can he contribute to a traditional IRA or to a Roth IRA in 2017?

Homework Answers

Answer #1

Answer The total contribution of John in IRA as per IRA Rules 2017 is $5500 with additional contribution of $1000 which can be made if age is 50 years pr above.

The total collectove contribution from all the accounts of IRA John might be having it will not exceed $5500 with $1000 as additional limit in case of 50 year or above.He ca contribute this amount one time or in small monthly installments which will auto debit from his account.

The limit of contribution to traditional IRA or Roth IRA are same with only difference of tax treatments.

In traditional IRA the contributions are allowed as tax deductions but the withdrwals from the IRA account is taxable income.

But In Roth IRA along with contributions as tax deductible the withdrwals are also tax free.Hence Roth IRA is 100% tax free.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Chan, a single 35-year-old CPA, is covered by a qualified retirement plan at work. His salary...
Chan, a single 35-year-old CPA, is covered by a qualified retirement plan at work. His salary is $120,000, and his total AGI is $129,000. The maximum contribution he can make to a Roth IRA in 2020 is A) 0. B) $2,400. C) $4,000. D) $6,000. LABEL & SHOW ALL WORK.
-Jack (age 52) and Jill (age 49) are a married couple. Jack is covered under a...
-Jack (age 52) and Jill (age 49) are a married couple. Jack is covered under a qualified retirement plan at his job and earned $180,000 in 2018. Jill is employed as a lab technician and earned $42,000 but is not covered under a qualified retirement plan. They file a joint return; have interest and dividend income of $25,000. What is their maximum for AGI deduction for contributions to a traditional IRA? A) $0 B) $5,500 C) $6,500 D) $12,000 -Reyansh...
Bob is a single, 40-year-old doctor earning $190,000 a year and is not covered by a...
Bob is a single, 40-year-old doctor earning $190,000 a year and is not covered by a pension plan at work. What is the maximum deductible contribution into a Traditional IRA and how much can he put into a roth IRA in 2019
Ben is a 19-year-old single software inventor earning $200,000 a year and is not covered by...
Ben is a 19-year-old single software inventor earning $200,000 a year and is not covered by a pension plan at work. How much can he put into a Roth IRA in 2017
John (age 53 and single) has earned income of $3,600. He has $34,600 of unearned (capital...
John (age 53 and single) has earned income of $3,600. He has $34,600 of unearned (capital gain) income. a. If he does not participate in an employer-sponsored plan, what is the maximum deductible IRA contribution John can make in 2017? b. If he does participate in an employer-sponsored plan, what is the maximum deductible IRA contribution John can make in 2017? c. If he does not participate in an employer-sponsored plan, what is the maximum deductible IRA contribution John can...
Which of the following statements are true? 1. Individuals not covered under an employer plan may...
Which of the following statements are true? 1. Individuals not covered under an employer plan may be phased out from investing in an after-tax (nondeductible) IRA 2. Individuals covered under an employer plan may be phased out from investing in a traditional (deductible) IRA 3. Individuals that are not covered by employer plan can contribute to a Roth IRA regardless of income 4. Individuals that are not covered by an employer plan can contribute to a traditional IRA regardless of...
Roger files as single on his 2017 tax return. He has a MAGI amount of 120,000...
Roger files as single on his 2017 tax return. He has a MAGI amount of 120,000 for the year. What is the maximum contribution amount that Roger can make to his Roth IRA?
John (age 51 and single) has earned income of $3,000. He has $30,000 of unearned (capital...
John (age 51 and single) has earned income of $3,000. He has $30,000 of unearned (capital gain) income If he does not participate in an employer-sponsored plan, what is the maximum deductible IRA contribution John can make in 2015? If he does participate in an employer-sponsored plan, what is the maximum deductible IRA contribution John can make in 2015? If he does not participate in an employer-sponsored plan, what is the maximum deductible IRA contribution John can make in 2015...
Tomas, aged 29, is married, filing jointly, and is not an active participant in a qualified...
Tomas, aged 29, is married, filing jointly, and is not an active participant in a qualified plan. However, his wife, Cindy, is an active participant in a qualified retirement plan. Tomas' compensation is $65,000 and the couple's AGI is $154,000 in 2018. Click here to access Exhibit 11.3. Do not round intermediate computations. If an amount is zero, enter "0". a. Tomas can contribute $ to his traditional IRA, and he can deduct $. His wife Cindy can make a...
Todd is single and has wages have $30,000. He makes a $600 deductible contribution to his...
Todd is single and has wages have $30,000. He makes a $600 deductible contribution to his traditional IRA and a $300 nondeductible contribution to his nieces Coverdell education savings account. What is the maximum contribution that Todd can make to his Roth IRA in 2017?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT