Background

Lance, 35, and Laney, 34, are married. They have come to you for advice on their retirement savings. They want to open individual retirement accounts and are not sure which would be the most advantageous for them, or even how much they can contribute.

Here are the details that they provide to you:

Lance is a firefighter covered by a pension plan at work. He currently makes $90,000 in an annual salary.

Laney is a paramedic, but is not covered by a pension plan at work. She currently makes $70,000 in an annual salary.

This is their only income.

Task

Citing tax law and regulations, prepare a memo addressing the IRAs available for Lance and Laney to invest in, identifying which type(s) would be most advantageous to each. (Use Lesson 12 for additional information on IRAs.)