Question

In a year in which a 40-year-old taxpayer may make a $6,000 maximum IRA contribution, what is the maximum Roth IRA contribution an eligible taxpayer may make if he made a $4,000 contribution to a traditional IRA

Answer 1

Answer : The maximum Roth IRA conrtibution an eligible taxpayer may make if he made a $ 4000 contribution to a traditional IRA = $ 2000

The amounts in 2020 are the same for both traditional IRAs, which are tax-deductible, and Roth IRAs, which are not tax-deductible.Total contributions to traditional IRAs and Roth IRAs cannot exceed the lesser of:

• $6,000 ($7,000 in "catch-up" contributions for taxpayers aged 50 or older)
• Your annual taxable compensation

The combined contribution limit grants you the ability to contribute to either a traditional IRA or a Roth IRA. Or, you can contribute a partial amount to both, as long as you don't exceed the dollar limits( $6000 )

The maximum Roth IRA = Total contribution permitted - Traditional IRA contribution

The maximum Roth IRA = 6000 - 4000 = 2000