Chatham Mae is single, age 35, and ,vanes co make a contribution to an IRA for the year ended December 31, 2018. She is an active participant in a qualified retirement plan sponsored by her employer. Her AGI for 2018 is $126,000 before considering any IRA contribution.

a. What type of IRA, if any, is Chatham Mae eligible to make a contribution to for 2018? If she is eligible to contribute co an IRA, what is the maximum amount chat she can contribute to the IRA?

b. Assume Chatham Mae contributes a total of $12,000 over six years to a Roch IRA. In 2024, she withdraws $15,000 to pay off her car loan. Her financial advisor suggested she withdraw the money from the IRA for two major reasons: (1) co eliminate her debt and (2) no tax would be due on distributions from a Roch IRA after five years. Chatham Mae ,vanes to verify the accuracy of her advisor's advice. What would be the tax consequences of this widrawal? Alternatively, what if Chatham Mae withdrew the $15,000 to purchase a house (she is a first-time homebuyer)?
c. Alternatively to Part b above, assume Chatham Mae has a traditional deductible IRA chat has a balance of $50,000. She has been able co deduct all of her contributions to the IRA in prior years. Her financial advisor has recommended that she rollover the funds from her traditional IRA co a Roth IRA in 2018. What are the tax consequences of this rollover in 2018?