Mark and Cindy Are Married with Salaries of $45,000 and $42,000

question 72

Short Answer

Mark and Cindy are married with salaries of $45,000 and $42,000, respectively. Adjusted gross income on their jointly filed tax return is $97,000. Both individuals are active participants in employer provided qualified pension plans. What is the maximum amount each person may deduct for AGI with regard to IRA contributions?

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Definitions:

Employment Contract

A legally binding agreement between an employer and an employee that outlines the terms and conditions of employment.

Promissory Note

A financial instrument that contains a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Signing Authority

The legal power granted to an individual or entity to sign official documents on behalf of another person or organization.

Breached Fiduciary Duty

A violation where a person in a position of trust fails to act in the best interests of another party they owe a duty to.