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Janet, age 29, is unmarried and is an active participant in a qualified retirement plan. Her modified AGI is $65,000 in 2018. Calculate the amount
Janet, age 29, is unmarried and is an active participant in a qualified retirement plan. Her modified AGI is $65,000 in 2018. Calculate the amount Janet can contribute to a traditional IRA and the amount she can deduct Click here to access Exhibit 19.3. Do not round intermediate computations. a. Janet can contribute 5,500 to her traditional IRA, but she can deduct 4,400 Feedback Check My Work Employees not covered by another qualified plan can establish their own tax deductible Individual Retirement Accounts (IRAs). However, the amount of the contribution and the extent to which it is deductible may be limited. b. Assume instead that Janet is a participant in a SIMPLE IRA and that she elects to contribute 4% of her compensation to the account, while her employer contributes 3%. Janet will contribute will vest immediately is X to her SIMPLE IRA account. Her employer will contribute s X The amount that
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