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What Is the Maximum Amount a 30-Year-Old Taxpayer and a 35-Year-Old

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Essay

What is the maximum amount a 30-year-old taxpayer and a 35-year-old spouse can put into a Traditional or Roth IRA for 2016, assuming they earn $50,000 in total and are not covered by pension plans?


Definitions:

Investment Returns

The profit or loss derived from investing in securities, real estate, or other assets, typically expressed as a percentage.

Market Liquidity

The extent to which a market allows assets to be bought and sold quickly without affecting the asset's price significantly.

Liquidity Risk

The risk of being unable to quickly convert assets into cash without significant loss in value, affecting a company's or individual's ability to meet short-term obligations.

Hedge Fund Returns

The earnings generated from investments in a hedge fund, which is a pooled investment fund that employs different strategies to earn active returns for its investors.

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