Fred and Flossie are married and their adjusted gross income is $196,000.Both Fred and Flossie are active participants in their company's qualified pension plan and have never established an Individual Retirement Account.What is the maximum combined amount they can contribute to Roth IRAs?

Question

Quizplus · Accepted Answer

For married couples filing jointly in 2023, the ability to contribute to a Roth IRA phases out between $218,000 and $228,000 of modified adjusted gross income. Since Fred and Flossie's income is $196,000, which is below the phase-out range, they can each contribute the maximum amount to a Roth IRA, which is $6,500 each, totaling $13,000. However, since the options provided do not include $13,000, the closest correct choice is $0, indicating a possible error in the question or options.

Fred and Flossie Are Married and Their Adjusted Gross Income