Question
Bill and Joyce can contribute the maximum to their respective IRA accounts in 2012. The IRA account is Joyce's only retirement vehicle. Bill's basis in
Bill and Joyce can contribute the maximum to their respective IRA accounts in 2012. The IRA account is Joyce's only retirement vehicle. Bill's basis in his IRA before the current year's contribution is $26,000, and Joyce's basis is $36,000. The fair market value of Bill's IRA on 12/31/12 is $41,720 and the fair market value of Joyce's IRA is $57,000. Bill and Joyce contributed 2,000 to a Coverdell Education Saving Account.
I already know that Bill can't contribute anymore because he does through work but Joyce is self-employed so can take the full amount. What forms do I use? Joyce's contribution is deductible because she is self-employed and their AGI is less than $173,000. Bill must file a Form 8606.
Help please!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started