Fred and Irma Are Married with Salaries of $49,000 and $44,000,respectively.Their

question 8

Short Answer

Fred and Irma are married with salaries of $49,000 and $44,000,respectively.Their combined AGI is $105,000.Both are active participant in their companies' qualified pension plans.Determine their maximum combined IRA contribution and deduction amounts?
$$\begin{array} { l l l } & \begin{array} { c } \text { Maximum } \\\text { Contribution }\end{array} & \begin{array} { c } \text { Maximum } \\\text { Deduction }\end{array} \\\hline \text { a. } & \$ 5,500 & \$ 2,750 \\\text { b. } & \$ 11,000 & \$ 2,750 \\\text { c. } & \$ 11,000 & \$ 5,500 \\\text { d. } & \$ 11,000 & \$ 7,500 \\\text { e. } & \$ 11,000 & \$ 11,000\end{array}$$

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Definitions:

Retail Industry

The sector of the economy that is composed of individuals and companies engaged in the selling of finished products to end-user consumers.

Non-executive Directors

Board members who are not part of the company's day-to-day operations but are responsible for oversight and strategic guidance.

Chief Financial Officer

A senior executive responsible for managing the financial actions of a company, including financial planning, risk management, and financial reporting.

General Manager

An executive responsible for overseeing the daily operations and business activities within a specific area or department of a company.