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Seth and Morgan are married. Seth does not work. Morgan supports them financially with funds from...

Seth and Morgan are married. Seth does not work. Morgan supports them financially with funds from her trust fund, investment income of $12,000, and her part-time job wages of $7,000 in 2018. If Morgan contributes $5,500 to a Roth IRA for 2018, how much can Seth contribute to his traditional IRA for 2018?
a. $0
b. $250
c. $1,500
d. $5,500
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Answer #1

a. $0

According to IRA for 2018, an individual can contribute in both Roth and traditional IRA in same year but it should not exceed the specified limits. For IRA 2018, an individual can contribute total up to $ 5,500 in a year in both Roth and traditional IRA. It does not matter how they split contribution in Roth and traditional IRA.

In above case, Morgan already contributed in Roth IRA amounting $ 5,500 and thus, there is no limit left for contribution in traditional IRA.   

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