For Each of the Following IRA Situations,determine the Amount the Taxpayer

question 23

Essay

For each of the following IRA situations,determine the amount the taxpayer can deduct.Discuss any limitations,which might be placed,on the deduction.
a.Marissa is single and is an active participant in a qualified employee pension plan.Determine the maximum Roth IRA contribution that she can make if her adjusted gross income for the year is $133,000.
b.David and Donna are married and file a joint return.Each is covered by an employee-sponsored pension plan,and their adjusted gross income is $104,000.Determine their maximum IRA contribution and deduction for the current year.
c.Pedro and Roxanne are married and have two children,ages 8 and 4.Their adjusted gross income for the year is $196,000.What is maximum amount they can contribute to each child's Coverdell Education Savings Account (CESA)for the year?

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Definitions:

Thermocouple

A device consisting of two different conductors that produces a voltage, proportional to a temperature difference, used for temperature measurements.

Premixed Solutions

Solutions that are prepared in advance by mixing two or more components in specified ratios before use.

Ethylene Glycol

A toxic, colorless liquid used primarily as an antifreeze and coolant in automotive engines.

OE Coolants

Original Equipment (OE) coolants are engine coolants specifically formulated to meet the manufacturer's specifications for optimal engine performance and longevity.