1.

Mr. and Mrs. Augustus were paid salaries of $55,000 and $60,000, respectively in 2015. They had no deductions for adjusted gross income other than their IRAs.

If they file married filing jointly, what is the maximum total amount they may contribute to their individual retirement accounts (and deduct the amount from their income) if they are both active participants in an employer's qualified retirement plan?

They are both less than 50 years old.

Review the example on page 479 before attempting this question.

		$11,000
		$1,650
		$4,400
		$9,350

2.

Mike and Dawn are married, in their 40s, and file using the married filing jointly status. Mike actively participates in a qualified retirement plan through his employer. Dawn is unemployed and stays home to raise the family's two children.

Before any deductions for their IRA contributions, the couple's AGI is $108,000 for 2015.

How much deductible IRA contribution can each person make in 2015?

		Mike $0, Dawn $5,500
		Mike $2,750, Dawn $5,500
		Mike $5,500, Dawn $0
		Mike $2,750, Dawn $0