Cisco and Carmen are both in their 30's and are married. Carmen earns $72,000 and Cisco earns $28,000. Their adjusted gross income is $107,000. Carmen is an active participant in her company's pension plan. Cisco's employer does not have a pension plan. What are Carmen and Cisco's maximum combined IRA contribution and deduction amounts?
Contribution Deduction
A)$-0- $-0-
B)$11,000 $5,500
C)$11,000 $9,350
D)$11,000 $11,000

Question

Quizplus · Accepted Answer

Carmen and Cisco's combined IRA contribution limit is $11,000. Carmen can deduct her full contribution of $5,500 because she is an active participant in her company's pension plan. Cisco can deduct his full contribution of $5,500 because his employer does not have a pension plan.

Cisco and Carmen Are Both in Their 30's and Are