Donald, a 40-year-old married taxpayer, has a salary of $55,000 and interest income of $6,000. He is an active participant in his employer's pension plan. What is the maximum amount Donald can contribute to a Roth IRA in 2016?

Question

Quizplus · Accepted Answer

The maximum amount a taxpayer can contribute to a Roth IRA in 2016 is $5,500 or their taxable compensation for the year, whichever is less. Since Donald's taxable compensation is $55,000, he can contribute the full maximum amount of $5,500.

Donald, a 40-Year-Old Married Taxpayer, Has a Salary of $55,000