A family having a taxable income of $150,000 would save how much in taxes if they...
A family having a taxable income of $150,000 would save how much in taxes if they decided to invest $10,000 into a traditional IRA
Homework Answers
IRA
There are varying contribution limit for different years. It is assumed that question has been asked for year 2019.
Contribution to IRA depends on some conditions like income and age group and Contribution by either of spouse participation to a retirement plan.
As age group and participation to retirement plan not provided it is solved in each case:-
|
Taxable income =150000$ |
||||
|
Age group |
Contribution by either of spouse in Retirement plan |
No contribution to Retirement plan |
||
|
If return filed |
If return filed |
|||
|
separately |
Jointly |
separately |
Jointly |
|
|
Less than 50 |
No deduction as income exceeding the limit of $ 123000 |
No deduction as income exceeding the limit of $ 123000 |
$10000 |
$10000 |
|
More than 50 but less than 70.5 |
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|
More than 70.5 |
nil |
nil |
||
|
Rule:- Partial deduction is allowed in case MAGI 0-10000$ |
||||
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