Michael is single and 35 years old. He is a participant in his employer\'s spons
ID: 2511185 • 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? (Leave no answer blank. Enter zero if applicable.)
a. Michael's AGI is $58,000 after he contributed $3,900 to a tradition IRA. Contribution to Roth IRA?
b. Michael's AGI is $88,500 before any IRA contributions. Contribution to Roth IRA?
c. Michael's AGI is $143,500 before any IRA contributions. Contribution to Roth IRA?
Explanation / Answer
a. Contribution to ROTH IRA: ($5500-$3900)=$1600
b. Contribution to ROTH IRA: $5500 ( Maximum limit to contribute in Roth IRA.
c He Can deduct any amount toward traditional IRA and Roth IRA because AGI is exceed with phaseout threshold.