H (age 50)and W (age 48)are married but only W is employed.She is not covered by a retirement plan at work.She earns $75,000 during the year and they have combined AGI of $78,000 before any IRA contribution.In 2017,the maximum amount together they may contribute to tax deductible IRAs is
A)$5,500.
B)$6,500.
C)$11,000.
D)$12,000.

Question

Quizplus · Accepted Answer

D)Since neither is in a retirement plan at work,they may each contribute $5,500 (a nonworking spouse may contribute $5,500 per year).Since H is age 50,he may contribute an additional $1,000.[($5,500 × 2)+ $1,000] = $12,000.

H (Age 50)and W (Age 48)are Married but Only W