Jackson and Ashley Turner (both 45 years old) are married and want to contribute
ID: 2511174 • Letter: J
Question
Jackson and Ashley Turner (both 45 years old) are married and want to contribute to a Roth IRA for Ashley. In 2017, their AGI is $191,600. 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. How much can Ashley contribute if she files a separate return?
c. 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
Answer:
1.If they file a joint return, the maximum contribution will be:
Threshold is 186k-196k
So5600 in excess/10000 = 56%
she cant put in roth of 5500*56% = 3080
Maximum Contribution = 5500 – 3080 = 2420
2.If she files a separate return, the maximum contribution will be:
ZERO, because threshold is 0-10K for separate return.
3.The maximum Contribution will be $2420 (as calculated in Point 1)
Reason: They are filing joint return.
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