Question

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$5,500 $6,500 Mark for follow up Question 12 of 30. Ben (48) and Lisa (49) are married, and they will file jointly for 2018. Ben earned $70,000 and is an active participant in his employer's retirement plan. Lisa earned $35,000. She is not covered by a retirement plan at work. They have no other income or adjustments, so their modified adjusted gross income (MAGI) is $105,000. Lisa would like to contribute $5,500 to her traditional IRA for 2018. She determines that she can deduct the full amount, since she is not an active participant in an employer-maintained retirement plan. Ben would also like to contribute $5,500 to a traditional IRA, but he does not want to contribute more than he can deduct for the tax year. What is his maximum deductible contribution amount? $0 $4,400 $5,225 $5,500 Mark for follow up

Answer 1

$5500

Deduction may be limited if the person is married and any of them are covered by a retirement plan at work and income exceeds certain levels.

For 2019, total contributions to all of your traditional and Roth IRAs cannot be more than:

* $6,000 ($7,000 if you’re age 50 or older), or

* your taxable compensation for the year, if your compensation was less than this dollar limit.

For 2015, 2016, 2017 and 2018, total contributions to all of your traditional and Roth IRAs cannot be more than:

* $5,500 ($6,500 if you’re age 50 or older), or

* your taxable compensation for the year, if your compensation was less than this dollar limit.