Michael is single and 35 years old. He is a participant in his employer’s sponso
ID: 2468199 • Letter: M
Question
Michael is single and 35 years old. He is a participant in his employer’s sponsored retirement plan. How much can Michael contribute to a Roth IRA in each of the following alternative situations?
A. Michael’s AGI is $47,000 after he contributed $2,400 to a traditional IRA.
Michael is single and 35 years old. He is a participant in his employer’s sponsored retirement plan. How much can Michael contribute to a Roth IRA in each of the following alternative situations?
A. Michael’s AGI is $47,000 after he contributed $2,400 to a traditional IRA.
B. Michael’s AGI is $77,000 before any IRA contributions.Explanation / Answer
A.
He can contribute a total of $5,500 in traditional and Roth IRA.Now he already contributed $2,400 to the traditional IRA.
So, the amount Michael can contribute to the Roth IRA is $3,100.
B.
He can contribute a maximum of $5,500 in Roth IRA.