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What is the calculation used in determining the deductible amount of an IRA contribution in 2018 when a persorn has a tax filing status of single and is an active participant? O A. 0.40 x (upper MAGI limit - MAGI amount) B. 0.50x (upper MAGI limit - MAGI amount) C. 0.55 x (upper MAGI limit - MAGI amount) O D. 0.60 x (upper MAGI Llimit - MAGI amount)

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Answer: C. 0.55 x (upper MAGI limit -MAGI amount) Explanation: Suppose if the persons modified AGI is $63,000 the deduction could be calculated as follows because the deduction is subject to the following limits -0.55% (upper MAGI limit-MAGI amount) -0.55% (73,000-63,000) - 5,500 For 2018, your total contributions to all of traditional and Roth cannot be more tharn: S5,500 (S6,500 if youre age 50 or older), or Taxable compensation for the year, if compensation was less than this dollar limit . . If the person covered by a retirement plan at work, use this table to determine if the Modifies AGI affects the amount of your deduction. Filing Status Modified AGI Deduction single or head of household $63,000 or less full deduction up to the amount of specified Limit.(As above) More than $63,000 but less than Partial deduction. $73,000 $73,000 or more No deduction, $101,000 or less married filing jointly or qualifyin;g widow(er) Full deduction up to the amount of specified Limit more than $101,000 but less than Partial deduction. $121,000 $121,000 or more No deduction married iling separately less than S10,000 Partial deduction. $10,000 or more No deduction Created by Universal Document Converter

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