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:

Cognitive Abilities

Mental skills encompassing learning, thinking, reasoning, problem-solving, decision-making, and memory.

Hands-on

Involving active engagement and direct experience in learning or doing something, rather than just theory.

Interactive Approach

A methodology that emphasizes active participation and engagement in learning processes, often involving two-way communication and feedback.

Piaget

A rephrased definition: Jean Piaget was a Swiss psychologist known for his pioneering work in the field of child development, especially regarding children’s cognitive development stages.