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Betsy (32) and Jared (36) are married and file a joint return. Betsy earned $102

ID: 2606394 • Letter: B

Question

Betsy (32) and Jared (36) are married and file a joint return. Betsy earned $102,000 during the year, and is covered by a retirement plan at work. Jared earned $95,000, and is not covered by a plan at work. Assuming they had no other income or adjustments, what is the maximum amount Jared may contribute to a Roth IRA for 2017?

A.) 0

B.) 1100

C.) 5500

D.) 6500

Betsy (32) and Jared (36) are married and file a joint return. Betsy earned $102,000 during the year, and is covered by a retirement plan at work. Jared earned $95,000, and is not covered by a plan at work. Assuming they had no other income or adjustments, what is the maximum amount Jared may contribute to a Roth IRA for 2017?

A.) 0

B.) 1100

C.) 5500

D.) 6500

Explanation / Answer

Option A is correct.

You can contribute to a Roth IRA if you make less than $196,000 jointly for married couples filing jointly. In the given case $ 197,000  (102000+95000) both are earnings which exceeds $ 196,000. Due to this, they can't make contribution to Roth IRA.

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