Paulette is age 32,single,and reported AGI of $66,000 in tax year 2014.She is an active participant in her employer's pension plan.What amount of deductible IRA contribution is disallowed in 2014?

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Quizplus · Accepted Answer

For a single taxpayer who is an active participant in an employer-sponsored retirement plan like Paulette, the phase-out range for deductibility of traditional IRA contributions in 2014 is between $60,000 and $70,000. Since Paulette's AGI of $66,000 falls within this range, the amount of her deductible IRA contribution is reduced by the phase-out percentage of 50%. Therefore, the amount of her deductible IRA contribution disallowed is $3,300 (50% of the maximum contribution limit for individuals under age 50, which was $5,500 in 2014).

Paulette Is Age 32,single,and Reported AGI of $66,000 in Tax