Brianne is single,age 46,and reported AGI of $125,000 in tax year 2017.She is an active participant in her employer's pension plan.What is the maximum Roth IRA contributions he can make in 2017?

Question

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Since Brianne is an active participant in her employer's pension plan and has an AGI of $125,000, she is not eligible to make a full contribution to a Roth IRA. Instead, she can only make a partial contribution. Based on the IRS phase-out rules for 2017, Brianne's maximum Roth IRA contribution for the year is calculated as follows:
First, find Brianne's modified AGI by subtracting her retirement plan contribution (whichever one she made during the year). Assuming she contributed the maximum to her employer’s plan, which was $18,000 in tax year 2017, her modified AGI would be $107,000 (i.e. $125,000 - $18,000 = $107,000).

Then, using the IRS phase-out table for 2017, we can determine that Brianne's maximum Roth IRA contribution is $2,933. This amount falls within the phase-out range of $118,000 to $133,000 for individuals filing as single. Therefore, the correct answer is B ($2,933).

Brianne Is Single,age 46,and Reported AGI of $125,000 in Tax