Tyne is a 48-year-old an unmarried taxpayer who is not an active participant in an employer-sponsored qualified retirement plan.Before IRA contributions,her AGI is $61,000 in 2013.What is the maximum amount she may contribute to a tax deductible IRA?

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Since Tyne is not an active participant in an employer-sponsored qualified retirement plan, she may make a tax-deductible contribution of up to $5,500 to a traditional IRA in 2013. The contribution limit increases to $6,500 for people age 50 or older. Therefore, the maximum amount Tyne may contribute to a tax-deductible IRA is $5,500 as long as she doesn't turn 50 in 2013.

Tyne Is a 48-Year-Old an Unmarried Taxpayer Who Is Not