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12.) Ms. Shin retired in 2021 at age 63 and made the first withdrawal of $20,000 from a traditional IRA. At year-end, the IRA balance
12.) Ms. Shin retired in 2021 at age 63 and made the first withdrawal of $20,000 from a traditional IRA. At year-end, the IRA balance was $89,200. In 2022, Ms. Shin withdrew $22,000 from the IRA. At year-end, the account balance was $71,100.
Required:
- Determine how much of each annual withdrawal was taxable assuming that contributions to the IRA were fully deductible.
- Determine how much of each annual withdrawal was taxable assuming that Mrs. Shin made $26,500 nondeductible contributions to the IRA.
- Determine how much of each annual withdrawal was taxable assuming that Mrs. Shin made $37,950 nondeductible contributions to the IRA.
11.) Micah and Lin Davos file a joint tax return. Each spouse contributed the maximum $6,000 to a traditional IRA.
Required:
In each of the following cases, compute the deduction for these contributions. The AGI in each case is before any deduction.
- Neither spouse is an active participant in a qualified retirement plan, and their AGI is $138,400.
- Micah is an active participant, but Lin is not. Their AGI is $128,400.
- Both spouses are active participants, and their AGI is $89,200.
- Micah is self-employed and does not have a SEP plan. Lin is an active participant. Their AGI is $114,400.
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