Melanie Is in the 35% Tax Bracket and Is Ineligible

question 683

Short Answer

Melanie is in the 35% tax bracket and is ineligible to make deductible or Roth IRA contributions. Nevertheless, she wishes to contribute $5,500 to a traditional nondeductible IRA. How much taxable salary must she earn to have $5,500 left for the contribution?

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Definitions:

Ohio State

A reference to The Ohio State University, often involved in various studies including leadership and organizational behavior research.

Michigan Studies

The Michigan Studies were foundational research efforts that examined leadership behaviors and their effects on group performance and employee job satisfaction.

Prescribes

Recommends or dictates specific actions, treatments, or procedures to be followed, often in a medical or authoritative context.

Ethical Values

Principles and standards that govern the behavior of individuals or groups based on notions of right and wrong.