Dan and Dawn Are Married and File a Joint Return

question 134

Short Answer

Dan and Dawn are married and file a joint return.During the current year,Dan had a salary of $30,000 and Dawn had a salary of $36,000.Both Dan and Dawn are covered by an employer-sponsored pension plan.Their adjusted gross income for the year is $91,000.Determine the maximum IRA contribution and deduction amounts.
$$\begin{array} { c c c } & \begin{array} { c } \text { Maximum } \\\text { Contribution }\end{array} & \begin{array} { c } \text { Maximum } \\\text { Deduction }\end{array} \\ \text { a. } & \$ 11,000 & \$ 11,000 \\\text { b. } & \$ 11,000 & \$ -0- \\\text { c. } & \$ 11,00 & \$ 5,500 \\\text { d. } & \$ 5,500 & \$ -0- \\\text { e. } & \$ 8,000 & \$8,000\end{array}$$

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