In 2018, Susan (44 years old) is a highly successful architect and is covered by an...

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Accounting

In 2018, Susan (44 years old) is a highly successful architectand is covered by an employee-sponsored plan. Her husband, Dan (47years old), however, is a Ph.D. student and unemployed. Compute themaximum deductible IRA contribution for each spouse in thefollowing alternative situations.
a. Susan’s salary and the couple’s AGI before any IRAcontribution deductions is $193,000. The couple files a joint taxreturn.
b. Susan’s salary and the couple’s AGI before any IRAcontribution deductions is $123,000. The couple files a joint taxreturn.
c. Susan’s salary and the couple’s AGI before any IRAcontribution deductions is $83,000. The couple files a joint taxreturn.
d. Susan’s salary and her AGI before the IRA contributiondeduction is $83,000. Dan reports $5,000 of AGI before the IRAcontribution deduction (earned income). The couple files separatetax returns.

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3.8 Ratings (623 Votes)

a Maximum deduction IRA contribution for Susan is 0 As Susan is covered by employee sponsored plan and the AGI on couples joint return is 193000 which exceed the phase out limit of 121000 Maximum deduction IRA contribution for Dan is 3300 Dan is not covered by any employee sponsored plan but Susan is covered by employee sponsored plan and the AGI on couples See Answer

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