Sally and Patrick are married with 4 young children.Patrick stays at home with the kids while Sally works as CEO of a small manufacturing firm earning $105,000 annually.Sally is covered by a 401(k)plan at work,but they would like to maximize their IRA contributions as well.Which of the following are true assuming their AGI is $105,897?

Question

Quizplus · Accepted Answer

Sally and Patrick can each contribute up to $6,500 to a Roth IRA because their AGI is below the limit for Roth IRA contributions. 
Patrick can contribute up to $5,500 to a traditional deductible IRA because he has earned income from staying at home with the children. Therefore, options A and D are both true, making answer choice E the best choice. Option B is not true because their AGI is above the limit for deductible traditional IRA contributions. Option C is not true because Patrick has earned income and is therefore eligible to contribute to an IRA.

Sally and Patrick Are Married with 4 Young Children