Dana, age 31 and unmarried, is an active participant in a qualified retirement plan. Her AGI is $118,000. What amount, if any, may Dana contribute to a Roth IRA in 2014?

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In 2014, individuals with an AGI of $114,000 or less can contribute up to the maximum amount of $5,500 to a Roth IRA. However, because Dana's AGI exceeds this amount, her contribution limit is reduced. To calculate her reduced limit, subtract 114,000 from her AGI of 118,000, resulting in a difference of $4,000. Divide this by $15,000 (the phase-out range for single filers), which equals 0.2667. Multiply this by the maximum contribution limit of $5,500, which equals $1,466.70. Subtract this final amount from the maximum contribution limit to get the reduced limit: $5,500 - $1,466.70 = $4,033. Therefore, Dana may contribute up to $4,033 to a Roth IRA in 2014.

Dana, Age 31 and Unmarried, Is an Active Participant in a Qualified