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Homer and Marge are married and file a joint return. They are both 42 years old. Homer's employer, the Springfield Nuclear Power Plant, offers a

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Homer and Marge are married and file a joint return. They are both 42 years old. Homer's employer, the Springfield Nuclear Power Plant, offers a 401(k) retirement plan. Marge is unemployed. The couple's combined modified adjusted gross income for the year is $106,000. Homer and Marge would like to increase their retirement savings and are considering making maximum contributions to traditional IRAS. For Me taxpayers, deductions for traditional IRA contributions are phased out according to the following schedule: When both spouses are covered by a plan at work, phase-out starts at modified AGI of $104,000 to $124,000. When only one spouse is covered by a plan at work 1. Phase-out starts at modified AGI of $104,000 to $124,000 for the spouse with an employer Sponsored plan. 2. Phase-out starts at modified AGI of $196,000 to $206,000 for the spouse without an employer-sponsored plan. What is the largest deduction Marge can claim for contributions to a traditional IRA? $6.000 $600 55.400 Homer and Marge are married and file a joint return. They are both 42 years old. Homer's employer, the Springfield Nuclear Power Plant, offers a 401(k) retirement plan. Marge is unemployed. The couple's combined modified adjusted gross income for the year is $106,000. Homer and Marge would like to increase their retirement savings and are considering making maximum contributions to traditional IRAS. For Me taxpayers, deductions for traditional IRA contributions are phased out according to the following schedule: When both spouses are covered by a plan at work, phase-out starts at modified AGI of $104,000 to $124,000. When only one spouse is covered by a plan at work 1. Phase-out starts at modified AGI of $104,000 to $124,000 for the spouse with an employer Sponsored plan. 2. Phase-out starts at modified AGI of $196,000 to $206,000 for the spouse without an employer-sponsored plan. What is the largest deduction Marge can claim for contributions to a traditional IRA? $6.000 $600 55.400

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