H (Age 50)and W (Age 48)are Married but Only W

question 104

Multiple Choice

H (age 50) and W (age 48) are married but only W is employed.She is not covered by a retirement plan at work.She earns $75,000 during the year and they have combined AGI of $78,000 before any IRA contribution.In 2015,the maximum amount together they may contribute to tax deductible IRAs is

• A)$5,500.
• B)$6,500.
• C)$11,000.
• D)$12,000.

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Definitions:

Expense Account

An account that tracks the costs incurred by a company in its operational activities, such as rent, utilities, and salaries.

Credit Portion

The segment of a financial transaction that records a decrease in assets or an increase in liabilities on a balance sheet.

Liability Account

An accounting ledger showing the obligations or debts a company owes to others, representing claims against the company's assets.

Debit Portion

The section of a financial transaction that records the increase in assets or decrease in liabilities on the left side of an account.