Maximum Annual Contributions to IRAS. H and W file a joint tax return. W is a lawyer with current-year earned income of $180,000. H works part-time as a land-scape architect and earned $22,000 in the current year. a. Assume that W is an active participant in the firm's qualified profit-sharing plan. How much may W and H contribute to their IRAS for the current year? How much of the contribution is deductible? b. Assume neither H nor W is an active participant in a qualified retirement plan. How does this assumption change your answers to (a) above?
Maximum Annual Contributions to IRAS. H and W file a joint tax return. W is a lawyer with current-year earned income of $180,000. H works part-time as a land-scape architect and earned $22,000 in the current year. a. Assume that W is an active participant in the firm's qualified profit-sharing plan. How much may W and H contribute to their IRAS for the current year? How much of the contribution is deductible? b. Assume neither H nor W is an active participant in a qualified retirement plan. How does this assumption change your answers to (a) above?
Chapter9: Deduct Ions: Employee And Self-employed - Related Expenses
Section: Chapter Questions
Problem 38P
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