Question

In: Finance

Jill and Fred are both 60 years of age and their joint MAGI for 2020 is...


Jill and Fred are both 60 years of age and their joint MAGI for 2020 is $210,000. What is the most that each can contribute directly to a Roth IRA in 2020?


$6,000

$7,000

$0

None of the other answers is correct

$4,500

Solutions

Expert Solution

Jill and Fred are both 60 years of age and their joint MAGI for 2020 is $ 210,000. The contribution to directly to a Roth IRA in 2020 will be $0 (Filing jointly)

Filing Status 2020 Modified AGI Contribution Limit
Married filing jointly Less than $196,000 $6,000 ($7,000 if you're age 50 or older)
Married filing jointly $196,000 to $203,999 Reduced
Married filing jointly $206,000 or more Not eligible

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

Jack and Jill are 41 years old and plan on retiring at age 65 and expect...
Jack and Jill are 41 years old and plan on retiring at age 65 and expect to live until age 95. Theycurrently earn $200,000 and expect to need $100,000 in retirement. They also expect that SocialSecurity will provide $24,000 of benefits in today’s dollars at age 65. They are saving $20,000 each intheir 401(k) plans and IRAs. Their son, Parker, is expected to go to college in 10 years. They want tosave for Parker’s college education, which they expect will...
            Phil & Susan, each age 60, are married filing a joint return. They have no...
            Phil & Susan, each age 60, are married filing a joint return. They have no dependents. Susan has wages of $34,000. Phil doesn’t work due to a disability, but he’s a buyer and seller of stocks on the internet. The couple’s stock transactions for the year are detailed below. They also had $2,300 of qualifying dividends. Fill in the last 2 columns in the table below. Security or fund* Date acquired Date sold Cost Sale price Gain or loss...
Facts: Couple is filing a joint tax return. Both are age 72. Both receive a pension...
Facts: Couple is filing a joint tax return. Both are age 72. Both receive a pension that gives them about 20,000 combined a year. They are also receiving Social Security income of about 20,000 combined a year. The filer has a part time 1099-MISC earned income as a contractor for a city which paid him 2300. He is claiming 150 dollars in expenses for travel expenses. They have a disabled adult child in the house who is age 40. Question:...
Dave and Sally Tufts, both age 35, are married with two children and file a joint...
Dave and Sally Tufts, both age 35, are married with two children and file a joint return. Assume the children do not qualify for the child tax credit, and the mortgage is not over $750,000. From the following information, compute their tax owed or refund due for 2020. Dave's Salary = $50,000 Federal income tax withheld = 4,000 Sally's Salary= 42,000 Federal income tax withheld = 5,000 Andy's contribution to an IRA (assume IRA is deductible for AGI)= 2,000 Dividends...
Dave and Sally Tufts, both age 35, are married with two children and file a joint...
Dave and Sally Tufts, both age 35, are married with two children and file a joint return. Assume the children do not qualify for the child tax credit, and the mortgage is not over $750,000. From the following information, compute their tax owed or refund due for 2020. Dave's Salary = $50,000 Federal income tax withheld = 4,000 Sally's Salary= 42,000 Federal income tax withheld = 5,000 Andy's contribution to an IRA (assume IRA is deductible for AGI)= 2,000 Dividends...
Glen and Diane Okumura (both age 48) are married, file a joint return, and live at...
Glen and Diane Okumura (both age 48) are married, file a joint return, and live at 39 Kaloa Street, Honolulu, HI 96815. Glen’s Social Security number is 111-11-1111, and Diane’s is 123-45-6789. The Okumuras have two dependent children, Amy (age 15) and John (age 9). Amy’s Social Security number is 123-45-6788, and John’s Social Security number is 123-45-6787. Glen works for the Hawaii Public Works Department, and Diane works in a retail dress shop. Glen’s employer provided medical insurance to...
1.Can Fred claim a credit disabled tax credit if he is a US resident, 60 years...
1.Can Fred claim a credit disabled tax credit if he is a US resident, 60 years old and is not permanently or totally disabled? Why or why not? Can Donna claim an elderly tax credit if she is 70 years old? Why or why not? 2.Calculate Lisa’s income tax (10% tax rate) if she: Earned $5,000 in wages Paid $100 for her work uniform Paid $200 of interest on her home mortgage Lost her watch ($300 FMV) Had a $400...
Kevin and Jill are married and in 2019 file a joint return. Kevin is 52 and...
Kevin and Jill are married and in 2019 file a joint return. Kevin is 52 and is not an active participant in a qualified employer pension plan, while Jill is 48 and is an active participant in a qualified employer pension plan. Determine the maximum Roth IRA contribution that can be made in each of the following cases: a. Assume that they did not make any contributions to other IRA accounts during the year. When their adjusted gross income for...
The time (in years) after reaching age 60 that it takes an individual to retire is...
The time (in years) after reaching age 60 that it takes an individual to retire is approximately exponentially distributed with a mean of about five years. Suppose we randomly pick one retired individual. We are interested in the time after age 60 to retirement. a. Define the random variable. X= _________________________________. b. IsXcontinuous or discrete? c. X~ = ________ d. μ= ________ e. σ= ________ f. Draw a graph of the probability distribution. Label the axes. g. Find the probability...
Jack, age 72, and Sydney, age 60, have been married for 20 years. Jack is unemployed...
Jack, age 72, and Sydney, age 60, have been married for 20 years. Jack is unemployed and Sydney earns $20,000. How much can Jack and Sydney contribute to each of their traditional IRA in 2020 respectively? Jack can contribute $   Sydney can contribute $ How will your answers change if Jack is 60 and Sydney is 48 years old now? Jack can contribute $   Sydney can contribute $
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT