Jackson and Ashley Turner (both 45 years old) are married and want to contribute

Question

Jackson and Ashley Turner (both 45 years old) are married and want to contribute to a Roth IRA for Ashley. In 2015, their AGI is $188,400. Jackson and Ashley each earned half of the income.

a. How much can Ashley contribute to her Roth IRA if they file a joint return?

b. Assume that Ashley earned all of the couple’s income and that she contributed the maximum amount she is allowed to contribute to a Roth IRA. What amount can be contributed to Jackson’s Roth IRA if they file a joint return?

Jackson and Ashley Turner (both 45 years old) are married and want to contribute to a Roth IRA for Ashley. In 2015, their AGI is $188,400. Jackson and Ashley each earned half of the income.

a. How much can Ashley contribute to her Roth IRA if they file a joint return?

b. Assume that Ashley earned all of the couple’s income and that she contributed the maximum amount she is allowed to contribute to a Roth IRA. What amount can be contributed to Jackson’s Roth IRA if they file a joint return?

Explanation / Answer

a)

Threshold limit = 183K -193 K = $5,500

Ashley is married filing joint return

so $5400in excess deviding $10,000

$5400 /10,000 = 54%

Ashley can't contribute 54% of $5,500 remining can be contributed to Roth IRA

Ashley's contribution to Roth IRA = 5500*46% = $2,530

b)

Same amount as her $2,530

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