Bill and Leslie are a married couple.Leslie is an account executive earning $75,000,and Bill is currently working on an advanced degree as well as taking care of their two-year-old son.Bill and Leslie want to make the maximum legal contribution to their IRA accounts.An appropriate contribution might be ____ in Bill's IRA and ____ in Leslie's IRA.

Question

Quizplus · Accepted Answer

As of 2020, the maximum IRA contribution limit for individuals under the age of 50 is $6,000. Since Bill is currently working on an advanced degree and taking care of their two-year-old son, it is assumed that he is not earning an income, so he cannot contribute more than $5,500 to his IRA. Leslie, on the other hand, is earning $75,000, so she can make a full contribution of $6,000 to her IRA. However, to stay within the maximum aggregate contribution limit of $12,000 for married couples, it makes sense for both of them to contribute $5,500 each. Therefore, the appropriate contribution would be $5,500 in Bill's IRA and $5,500 in Leslie's IRA, making a total contribution of $11,000. Thus, the correct answer is A) $5,500; $5,500.

Bill and Leslie Are a Married Couple