Exercise 19-21 (Algorithmic) (LO. 6) The AGI of the Newtons, a married couple, is $203,750 this year. They would like to contribute to a Roth IRA. Round any division to two decimal places. Round final answer to the nearest dollar. a. What is the maximum amount this couple can contribute to a Roth IRA? 12,000 X Feedback Check My Work Introduced by Congress to encourage individual savings, a Roth IRA is a nondeductible alternative to the traditional deductible Earnings Inside a Roth IRA are not taxable, and all qualified distributions from a Roth IRA are tax-free. b. Suppose that the Newtons will report AGI of less than $201,000 and put $12,000 each year into their Roth IRA for 18 years, earning an annual return of 3%. What future value will accumulate in their Roth at the end of this period? The future value of an ordinary annuity at 3% for 18 years is 23.4144. 280,972.8 X Feedback Check My Work Incorrect Feedback Check My Work 1 more Check My Work uses remaining Previous Next