Please note to use 2016 tax law: In 2015 , Susan (44 years old) is a highly succ
ID: 2454083 • Letter: P
Question
Please note to use 2016 tax law:
In 2015, Susan (44 years old) is a highly successful architect and is covered by an employee-sponsored plan. Her husband, Dan (47 years old), however, is a PH.D. student and is unemployed. Compute the maximum deductible IRA contribution for each spouse in the following alternative situations.
Please help me solve these probelms and provide an explanation!
14) Susan's salary and the couple's AGI is $190,000. The couple files a joint return.
A) Susan $0; Dan $3,850
B) Susan $0; Dan $5,500
C) Susan $0; Dan $1,650
D) Susan $5,500; Dan $5,500
15) Susan's salary and the couple's AGI is $120,000. The couple files a joint tax return.
A) Susan $0; Dan $5,500
B) Susan $5,500; Dan $5,500
C) Susan $5,500; Dan $0
D) Susan $0; Dan $0
16) Susan's salary and the couples's AGI is $80,000. The couple files a joint tax return.
A) Susan $5,500; Dan $0
B) Susan $0; Dan $0
C) Susan $0; Dan $5,500
D) Susan $5,500; Dan $5,500
Explanation / Answer
Ans. Please refer to follwing guidlines for computation of maximum deductible IRA contribution for each spouse.
1) For 2015 and 2016, your total contributions to all of your traditional and Roth IRAs cannot be more than:
2) 2016 IRA Contribution and Deduction Limits - Effect of Modified AGI on Deductible Contributions If You ARE Covered by a Retirement Plan at Work
If you're covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction.
If Your Filing Status Is...
$61,000 or less
a full deduction up to the amount of your contribution limit.
more than $61,000 but less than $71,000
a partial deduction.
$71,000 or more
no deduction.
$98,000 or less
a full deduction up to the amount of your contribution limit.
more than $98,000 but less than $118,000
a partial deduction.
$118,000 or more
no deduction.
less than $10,000
a partial deduction.
$10,000 or more
no deduction.
Ans.14) Susan's salary and the couple's AGI is $190,000. The couple files a joint return.
A) Susan $0; Dan $3,850 Ans.$0. Nothing is deductible.
B) Susan $0; Dan $5,500 Ans.$0. Nothing is deductible.
C) Susan $0; Dan $1,650 Ans.$0. Nothing is deductible.
D) Susan $5,500; Dan $5,500 Ans.$0. Nothing is deductible.
Ans.15) Susan's salary and the couple's AGI is $120,000. The couple files a joint tax return.
A) Susan $0; Dan $5,500 Ans.$0. Nothing is deductible.
B) Susan $5,500; Dan $5,500Ans.$0. Nothing is deductible.
C) Susan $5,500; Dan $0Ans.$0. Nothing is deductible.
D) Susan $0; Dan $0Ans.$0 Nothing is deductible.
Ans.16) Susan's salary and the couples's AGI is $80,000. The couple files a joint tax return.
A) Susan $5,500; Dan $0 Ans. Maximum deductible cotribution$5500
B) Susan $0; Dan $0Ans.$0 Nothing is deductible.
C) Susan $0; Dan $5,500 Ans.$0 Nothing is deductible.
D) Susan $5,500; Dan $5,500Ans.Maximum deductible cotribution$5500
Note:- Dan' s contribution will not be eligible for any deducction as he is not earning.
If Your Filing Status Is...
And Your Modified AGI Is... Then You Can Take... single orhead of household
$61,000 or less
a full deduction up to the amount of your contribution limit.
more than $61,000 but less than $71,000
a partial deduction.
$71,000 or more
no deduction.
married filing jointly or qualifying widow(er)$98,000 or less
a full deduction up to the amount of your contribution limit.
more than $98,000 but less than $118,000
a partial deduction.
$118,000 or more
no deduction.
married filing separatelyless than $10,000
a partial deduction.
$10,000 or more
no deduction.
If you file separately and did not live with your spouse at any time during the year, your IRA deduction is determined under the "single" filing status.Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.