Raul and Jenna Are Married and Are Both Working

question 78

Essay

Raul and Jenna are married and are both working.They are both over age 50.Jenna participates in her employer's Sec.401(k)plan and makes the maximum contribution and enjoys a company matching contribution.Raul's employer does not maintain a retirement plan so he would like to save as much as possible in a tax-advantaged manner for retirement.They expect to report $190,000 of AGI for 2017.
a.What is the maximum amount that Raul can contribute to a traditional IRA and how much can he deduct?
b.What is the maximum amount that Raul can contribute to a Roth IRA and how much can he deduct?
c.How could Raul contribute to both the traditional IRA and Roth IRA to maximize current and future tax savings?

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Definitions:

Haworth

A representation method in chemistry used to depict the cyclic structure of monosaccharides with a simple three-dimensional perspective.

α-L-Fructofuranose

A form of fructose sugar with a five-membered ring structure, commonly found in honey and fruit.

Fischer Diagram

A method of depicting stereoisomers of a chemical compound by projecting its three-dimensional structure onto a two-dimensional plane.

Fischer Projection

A method of representing the three-dimensional spatial arrangement of atoms in molecules by using a two-dimensional drawing where horizontal lines represent bonds coming out of the plane toward the viewer and vertical lines represent bonds going into the plane.