Kathy and Patrick are married with salaries of $28,000 and $21,000,respectively.Adjusted gross income on their jointly filed tax return is $54,000.Both individuals are active participants in employer provided qualified pension plans.What are Kathy and Patrick's maximum combined IRA contribution and deduction amounts?

Contribution Deduction
A)$-0- $-0-
B)$11,000 $-0-
C)$5,500 $5,500
D)$11,000 $8,000
E)$11,000 $11,000

Question

Kathy and Patrick are married with salaries of $28,000 and $21,000,respectively.Adjusted gross income on their jointly filed tax return is $54,000.Both individuals are active participants in employer provided qualified pension plans.What are Kathy and Patrick's maximum combined IRA contribution and deduction amounts?
​
Contribution Deduction
A)$-0- $-0-
B)$11,000 $-0-
C)$5,500 $5,500
D)$11,000 $8,000
E)$11,000 $11,000

Quizplus · Accepted Answer

Kathy and Patrick's combined AGI is $54,000, which is below the $110,000 limit for full IRA contributions. Therefore, they can each contribute the maximum of $5,500 to their IRAs, for a total of $11,000. Since they are both active participants in employer-provided qualified pension plans, their IRA contributions are not deductible.

Kathy and Patrick Are Married with Salaries of $28,000 and $21,000,respectively.Adjusted