Joyce, age 40, and Sam, age 42, who have been married for seven years, are both active participants in qualified retirement plans. Their total AGI for 2018 is $130,000. Each is employed and earns a salary of $65,000. What are their combined deductible contributions to traditional IRAs?
A) $0
B) $3,000
C) $4,000
D) $8,000
E) None of the above

Question

Quizplus · Accepted Answer

Since both Joyce and Sam are active participants in qualified retirement plans and their AGI exceeds the phase-out limit for deductible IRA contributions for 2018, they are not eligible for any deductible contributions to traditional IRAs.

Joyce, Age 40, and Sam, Age 42, Who Have Been