Tucker (age 52)and Elizabeth (age 48)are a married couple.Tucker is covered under a qualified retirement plan at his job and earned $90,000 in 2019.Elizabeth is employed as a lab technician and earned $30,000 but is not covered under a qualified retirement plan.They file a joint return; have interest and dividend income of $25,000.What is the maximum amount of tax deductible contributions that may be made to a traditional IRA?

Question

Quizplus · Accepted Answer

Since Tucker is covered under a qualified retirement plan, the couple's AGI exceeds the threshold for deducting contributions to a traditional IRA. Therefore, the maximum tax-deductible contribution for them is $6,000 (the maximum contribution limit for individuals under age 50 in 2019). Choice A and D are incorrect because the couple's AGI is too high to make any tax-deductible contributions to a traditional IRA. Choice B is incorrect because the maximum contribution limit for a traditional IRA is $6,000 in 2019.

Tucker (Age 52)and Elizabeth (Age 48)are a Married Couple