Jill is single, age 27, and reported AGI of $62,000 in tax year 2015. She is an active participant in her employer's pension plan. What is the maximum deductible Roth IRA contribution she can make in 2015?

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Quizplus · Accepted Answer

According to IRS rules, if Jill is an active participant in a pension plan, the deductibility of contributions to a traditional IRA is limited based on her income. In 2015, for single filers covered by a workplace retirement plan, the deductibility of traditional IRA contributions begins to phase out at $61,000 and is completely phased out at $71,000. Since Jill's income falls within this range, she cannot make a deductible contribution to a traditional IRA. Additionally, Roth IRA contributions are not deductible for tax purposes, so her maximum contribution would be $5,500, but it would not be deductible. Therefore, Jill's maximum deductible Roth IRA contribution for 2015 is $0.

Jill Is Single, Age 27, and Reported AGI of $62,000