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

question 42

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 $73,000.
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 $103,000. 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:

Consideration

The value (which can be in the form of goods, services, money, or a promise) exchanged between parties in a contract, making the agreement legally binding.

Delivery

In legal and commercial contexts, delivery refers to the act of transferring possession or control of an item, asset, or document from one party to another.

Acceptance

The agreement to the terms of an offer, contract, or proposal, thereby creating a binding contract.

Intention

The state of mind or determination to perform a specific act or to act in a specific manner for a specific purpose.