Joyce,age 39,and Sam,age 40,who have been married for seven years,are both active participants in qualified retirement plans.Their total AGI for 2011 is $120,000.Each is employed and earns a salary of $65,000.What are their combined deductible contributions to traditional IRAs?

Question

Quizplus · Accepted Answer

Both Joyce and Sam are active participants in qualified retirement plans through their employment, which means their contributions to traditional IRAs may not be deductible. Since their combined AGI exceeds the limit for deductibility, they are not eligible to make deductible contributions to traditional IRAs. Therefore, the correct answer is A) $0.

Joyce,age 39,and Sam,age 40,who Have Been Married for Seven Years,are