Mr and Mrs Lawry, Both Age 60, Each Make the Maximum

question 89

Multiple Choice

Mr and Mrs Lawry, both age 60, each make the maximum contribution to their traditional IRAs. Mr Lawry is an active participant in a section 401(k) plan, but Mrs Lawry is not an active participant in any other qualified plan. If their joint AGI before any IRA deduction is $144,900, compute their AGI.

• A) $144,900
• B) $139,400
• C) $138,400
• D) $131,900

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Definitions:

Sale

The exchange of goods or services for money, forming the basis of revenue for most businesses.

Debt Securities

Financial instruments representing a loan made by an investor to a borrower, typically entailing fixed interest payments and principal repayment upon maturity.