Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

sul Study Problem 5.3 2018 AGI Phase-Out Ranges for Traditional and Roth IRA Contributions to be used for this problem. 2018 AGI Phase-Out Ranges for

image text in transcribed
sul Study Problem 5.3 2018 AGI Phase-Out Ranges for Traditional and Roth IRA Contributions to be used for this problem. 2018 AGI Phase-Out Ranges for Deductible Traditional IRA Contributions Type of Taxpayer Phase Out Range Single or HOH, not a plan participant No phase-out Single or HOH, active plan participant $63,000-$73,000 Married, Joint, both active participants $101,000-$121,000 Married, joint, neither active plan participants No phase-out Married, Joint, one an active participant: (See Note 1 below) Active participant spouse $101,000-$121,000 (Joint AGI) Nonactive participant spouse $189,000-$199,000 (Joint AGI) Note 1: When one spouse is an active participant in a retirement plan and the other is not, two separate income limitations apply. The active participant spouse may make a full deductible IRA contribution unless the $101,000-$121,000 phase-out range applies to the couple's joint income. The spouse who is not an active participant may make a full deductible IRA contribution unless the higher $189,000-$199,000 phase-out range applies to the couple's joint Income. 2018 AGI Phase-Out Ranges for Roth IRA Contributions Filing Status AGI Phase-Out Range Single or HOH $120,000-$135,000 Married, Joint $189,000-$199,000 Note: Active plan participation status is not relevant to the Roth IRA phase-out calculation. Special rules apply to married filing separate taxpayers. a. During 2018, George (a 24-year-old single taxpayer) has a salary of $46,000, dividend income of $14,000, and interest income of $3,000. In addition, he has rental income of $1,000. George is com Calculate the maximum regular TRA deduction that George is allowed. b. During 2018, trene (a single taxpayer, under age 50) has a salary of $114,500 and dividend income of $10,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

CISA Certified Information Systems Auditor All In One Exam Guide

Authors: Peter H. Gregory

4th Edition

1260458806, 978-1260458800

More Books

Students also viewed these Accounting questions

Question

Identify and describe four types of interfund activities.

Answered: 1 week ago