Homer and Marge are married and have an adjusted gross income of $183,000.Currently,neither is covered by an employer sponsored pension plan.They have never established an Individual Retirement Account until this year,when they opened a Roth IRA.What is the maximum amount they can each contribute to Roth IRAs?

Question

Quizplus · Accepted Answer

According to IRS guidelines for 2021, individuals with an adjusted gross income of $198,000 or less ($125,000 or less for singles) can contribute up to $6,000 to a Roth IRA. Homer and Marge's adjusted gross income falls below this threshold, so they can each contribute up to $6,000 for a total of $12,000. Since the answer choices all offer amounts below this limit, the best choice is E, which is the closest to the correct answer.

Homer and Marge Are Married and Have an Adjusted Gross