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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?
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Answer #1

Roth IRA is the most convenient tax saving way to save for retirement, in USA contributions to roth IRA is generally not taxed.

  • An individual can make contribution to ROTH IRA based on the max amount allowed under the law.
  • For contribution to roth IRA the individual must have less than 135000 in income being filing as single.
  • The max contribution that is allowed is $5500 unless the age is more than 50 years.
  • The contribution can be made from the JAN 1 to any time before the tax filing date.

Since Todd mets the above conditions he can contribute max of $5500 in an year to the roth ira account.

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