Jody is a physician (not covered by a retirement plan) with a salary of $40,000 from the hospital where she is employed. She supports her husband, Andre, who sells art work and has no earned income. Both are in their twenties. What is the maximum total amount that Jody and Andre may contribute to their IRAs and deduct for the 2015 tax year?

Question

Quizplus · Accepted Answer

Jody can contribute up to $5,500 to her IRA for the 2015 tax year, since she is under 50 years old. Since she has no retirement plan offered through her employer, her contribution is fully deductible. Andre can also contribute up to $5,500 to a traditional IRA, which is not deductible since he has no earned income. Combined, they can contribute up to $11,000 to their IRAs and deduct the full amount.

Jody Is a Physician (Not Covered by a Retirement Plan)