Question

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 year is $125,000, Jill's maximum contribution to her Roth IRA is $_6,000_

b. When their adjusted gross income for the year is $194,000, Jill's maximum contribution to her Roth IRA is $______.

c. When their adjusted gross income for the year is $201,000, Jill's maximum contribution to her Roth IRA is $______.

d. Would your answer to parts a and b (for Kevin's contribution) change if Kevin makes the maximum allowable contribution to his deductible IRA?
_Yes_

Answer 1

limits for ROth

MARRIED FILING JOINTLY	2019
	Less than $193,000		$6,000 ($7,000 if age 50+)
	$193,000 to $202,999		Begin to phase out
	$203,000 or more		Ineligible for direct Roth IRA

a) Maximum contribution if AGI not exceeding 193000 is $ 6000

Steps to calculate Maximum Roth if income is between 193000 to 202999

1. If the amount you can contribute must be reduced, figure your reduced contribution limit as follows.

2. Start with your modified AGI.
3. Subtract from the amount in (1):
   1. $193,000 if filing a joint return or qualifying widow(er),
   2. $-0- if married filing a separate return, and you lived with your spouse at any time during the year, or
   3. $122,000 for all other individuals.
4. Divide the result in (2) by $15,000 ($10,000 if filing a joint return, qualifying widow(er), or married filing a separate return and you lived with your spouse at any time during the year).
5. Multiply the maximum contribution limit (before reduction by this adjustment and before reduction for any contributions to traditional IRAs) by the result in (3).
6. Subtract the result in (4) from the maximum contribution limit before this reduction. The result is your reduced contribution limit.

In absence of other information AGI = modified AGI 1940000

Part B and C

Particular	Amount $	Amount$
step1 Modified AGI ……..1	194000	201000
step2 Subtract	193000	193000
step 3 Result	1000	8000
Step 4 Result/10000 (A)	0.10	0.80
Step 5 maximum contribution Limit (B)	6000	6000
step 6 D = A*B	600	4800
step 7 Maximum contribution to her Roth IRA	5400	1200

D)

For A)Part maximum, the contribution will be 7000 as age is above 50 i.e 52

For part B

Particular	Amount $
Modified AGI ……..1	194000
Subtract	193000
Result	1000
Result/10000 (A)	0.
maximum contribution Limit (B)	7000
D = A*B	700
Maximum Roth contribution for kevin	6300