Dana,age 31 and unmarried,is an active participant in a qualified retirement plan.Her AGI is $118,000.What amount,if any,may Dana contribute to a Roth IRA in 2014?
A)$0
B)$3,225
C)$4,033
D)$5,500
E)None of these

Question

Quizplus · Accepted Answer

Dana may contribute $4,033 to a Roth IRA in 2014,calculated as follows:
$118,000 AGI - $114,000 threshold = $4,000 excess AGI
$4,000/$15,000 phaseout range × $5,500 = $1,467 phaseout
$5,500 maximum contributions - $1,467 phaseout = $4,033 contribution ceiling

Dana,age 31 and Unmarried,is an Active Participant in a Qualified