Problem 5-6 Individual Retirement Accounts (LO 5.3) What is the maximum amount a 55-year-old taxpayer and 52-year-old spouse can put into a Traditional or Roth IRA for 2019, assuming they earn $70,000 in total and are not participants in pension plans? 13,000 x Feedback Check My Work There are two principal types of IRAs in the U.S. tax law. One is the traditional IRA and the other is the Roth IRA. Annual contributions to a traditional IRA are deductible, and retirement distributions are taxable. Annual contributions to a Roth IRA are not deductible, and retirement distributions are nontaxable. Earnings in both types of IRAs are not taxable in the current year. The annual deduction maximums are reduced for traditional IRAs if the taxpayer is an active participant in another qualified retirement plan. The annual contribution allowed for a Roth IRA is reduced for all taxpayers over certain income levels, but is not affected by whether the taxpayer or spouse is an active participant in another retirement plan