What Is the Maximum Deductible Contribution That Can Be Made

question 71

Essay

What is the maximum deductible contribution that can be made to one or more deductible IRAs in each of the following instances?
a.A single person,age 41,who is not an active participant in an employer-sponsored retirement plan with AGI of $97,000.
b.A married couple,ages 33 and 34,neither of whom is an active participant in an employer-sponsored retirement plan.One spouse has W-2 income of $57,000 and the other spouse did not work.
c.A married couple,ages 44 and 48.One spouse is covered under an employer-sponsored retirement plan and the other is not.The covered spouse has W-2 income of $125,000 and the non-covered spouse has W-2 income of $32,000.

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U.S. Investor

An individual or entity based in the United States that allocates capital in various financial assets to earn a return.

Fixed Exchange Rate

A country's currency value set and maintained as equal to the value of another single currency or to a basket of other currencies, or to another measure of value, such as gold.

Covariance

A measure of the degree to which two variables move in relation to each other.

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The financial market in Japan where publically traded company stocks are bought and sold, notably includes the Tokyo Stock Exchange.