Jody is a physician (not covered by a retirement plan) with a salary of $40,000 from the hospital where she is employed. She supports her husband, Andre, who sells art work and has no earned income. Both are in their twenties. What is the maximum total amount that Jody and Andre may contribute to their IRAs and deduct for the 2014 tax year?

Question

Quizplus · Accepted Answer

For the 2014 tax year, the maximum contribution limit for an IRA is $5,500 ($6,500 if over age 50). Since Jody has earned income, she can contribute up to $5,500 to her own IRA, and also contribute up to $5,500 to a spousal IRA for Andre, for a total contribution of $11,000. Since they are both under age 50, the maximum total amount they may contribute and deduct is $11,000. Therefore, the correct answer is C, $11,000.

Jody Is a Physician (Not Covered by a Retirement Plan)