. Ellie (age 45) and Ryker (age 55), are married and filed a joint return for 20

Question

. Ellie (age 45) and Ryker (age 55), are married and filed a joint return for 2018. Ellie earned a W-2 salary of $100,000 (net of any pre-tax deductions) in 2018 and is an active participant in her employer’s 401(k) plan. Ellie and Ryker had capital gain income of $30,000 in 2018 from their joint brokerage account. Ryker is not employed and the couple had no other income. On May 13, 2018, Ellie contributed the maximum amounts possible to Traditional IRA’s for herself and Ryker for the 2018 tax year. The maximum allowable IRA deduction on their 2018 joint tax return is

a. $0.

b. $5,500.

c. $6,500.

d. $12,000.

e. $13,000.

Explanation / Answer

Answer is A i.e $ 0

As the AGI exceeds $ 121000 ( $100000+$30000= $130000) so no deduction will be allowed.

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.