Jackson and Ashley Turner (both 45 years old) are married and want to contribute to a Roth IRA for Ashley. In 2019, their AGI is $197,000. Jackson and Ashley each earned half of the income. USE 2019 Tax Rate Schedules
a. How much can Ashley contribute to her Roth IRA
if they file a joint return?
b. How much can Ashley contribute if she files a separate return?
c. Assume that Ashley earned all of the couple’s income and that she contributed the maximum amount she is allowed to contribute to a Roth IRA. What amount can be contributed to Jackson’s Roth IRA?
Part A
$3600
The contribution to a Roth IRA is allowed to the extent AGI falls below certain threshold limits. The AGI threshold limits for married individuals filing jointly is between $193,000 and $203,000. Because Jackson and Ashley’s AGI is 40% of the way between $193,000 and $203,000 [($197,000 – 193,000)/($203,000 – 193,000)], Ashley’s maximum contribution is phased out by 40%. That is, of the $6,000 maximum contribution, Ashley may contribute $3,600 [$6,000 × 60% (100% - 40% phased-out percentage)].
Part B
$0
The AGI threshold limits for married individuals filing separately is between $0 and $10,000. Therefore, Ashley would not be able to contribute to a Roth IRA if they choose to file separately.
Part C
$3600
The contribution to a Roth IRA is allowed to the extent AGI falls below certain threshold limits. The AGI threshold limits for married individuals filing jointly is between $193,000 and $203,000. Because Jackson and Ashley’s AGI is 40% of the way between $193,000 and $203,000 [($197,000 – 193,000)/($203,000 – 193,000)], Ashley’s maximum contribution is phased out by 40%. That is, of the $6,000 maximum contribution, Ashley may contribute $3,600 [$6,000 × 60% (100% - 40% phased-out percentage)].
Jackson and Ashley Turner (both 45 years old) are married and want to contribute to a...
Jackson and Ashley Turner (both 45 years old) are married and want to contribute to a Roth IRA for Ashley. In 2019, their AGI is $197,000. Jackson and Ashley each earned half of the income. USE 2019 Tax Rate Schedules a. How much can Ashley contribute to her Roth IRA if they file a joint return? b. How much can Ashley contribute if she files a separate return? c. Assume that Ashley earned all of the couple’s income and that...
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[The following information applies to the questions displayed below.) Jackson and Ashley Turner (both 45 years old) are married and want to contribute to a Roth IRA for Ashley. In 2019, their AGI is $197,100. Jackson and Ashley each earned half of the income. Use Tax Rate Schedule for reference. (Leave no answer blank. Enter zero if applicable.) a. How much can Ashley contribute to her Roth IRA if they file a joint return? Contribution to Roth IRA b. How...
Jackson and Ashley Turner (both 45 years old) are married and want to contribute to a Roth IRA for Ashley. In 2020, their AGI is $170,000. Jackson and Ashley each earned half of the income. (Leave no cells blank - be certain to enter "0" wherever required.) Problem 6-56 Part a (Static) a. How much can Ashley contribute to her Roth IRA if they file a joint return? Contribution to Roth IRA
Jackson and Ashley Turner (both 45 years old) are married and
want to contribute to a Roth IRA for Ashley. In 2019, their AGI is
$197,100. Jackson and Ashley each earned half of their income.
a. How much can Ashley contribute to her Roth IRA if they file a joint return? Contribution to Roth IRA b. How much can Ashley contribute if she files a separate return? Contribution to Roth IRA c. Assume that Ashley earned all of the couple's...
Jackson and Ashley Turner (both 45 years old) are married and want to contribute to a Roth IRA for Ashley. In 2018, their AGI is $191,800. Jackson and Ashley each earned half of the income.
Jackson and Ashley Turner (both 45 years old) are married and want to contribute to a Roth IRA for Ashley. In 2018, their AGI is $191,800. Jackson and Ashley each earned half of the income.
2019 Tax Rate Schedules Individuals Schedule x Simple Schedule Head of lowed The tax is: Ir taxable income But not own Ir taxable income is But of The tas is! 59,00 10 of taxable income S 0 S 13550 10 of the come $ 0,700 S 39,475 S 13.550 S 52550 S1.355 plus 125 of 5970 plus 12 of the excess over 59,700 S350 5 39,475 54,543 pm 22 of 5 34,200 56,065 plus 225 of 5 52550 554.200 539,475...
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