Phil and Linda are 25-year-old newlyweds and file a joint tax return. Linda is covered by a retirement plan at work, but Phil is not. If an amount is zero, enter "0". a. Assuming Phil's wages were $27,000 and Linda's wages were $18,500 for 2021 and they had no other income, what is the maximum amount of their deduction for contributions to a traditional IRA for 2021? Phil Linda b. Assuming Phil's wages were $55,000 and Linda's wages were $71,000 for 2021 and they had no other income, what is the maximum amount of their deduction for contributions to a traditional IRA for 2021? Phil Linda
Phil and Linda are 25-year-old newlyweds and file a joint tax return. Linda is covered by a retirement plan at work, but Phil is not. If an amount is zero, enter "0". a. Assuming Phil's wages were $27,000 and Linda's wages were $18,500 for 2021 and they had no other income, what is the maximum amount of their deduction for contributions to a traditional IRA for 2021? Phil Linda b. Assuming Phil's wages were $55,000 and Linda's wages were $71,000 for 2021 and they had no other income, what is the maximum amount of their deduction for contributions to a traditional IRA for 2021? Phil Linda
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Problem 5-4
Individual Retirement Accounts (LO 5.3)
Phil and Linda are 25-year-old newlyweds and file a joint tax return. Linda is covered by a retirement plan at work, but Phil is not.
If an amount is zero, enter "0".
a. Assuming Phil's wages were $27,000 and Linda's wages were $18,500 for 2021 and they had no other income, what is the maximum amount of their
deduction for contributions to a traditional IRA for 2021?
Phil
Linda
b. Assuming Phil's wages were $55,000 and Linda's wages were $71,000 for 2021 and they had no other income, what is the maximum amount of
their deduction for contributions to a traditional IRA for 2021?
Phil
Linda $](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe7269338-1a9f-4b6b-a181-cfa2a387b91f%2Fde9ac386-2142-4104-b983-bfe149093c60%2F6j2wgbu_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 5-4
Individual Retirement Accounts (LO 5.3)
Phil and Linda are 25-year-old newlyweds and file a joint tax return. Linda is covered by a retirement plan at work, but Phil is not.
If an amount is zero, enter "0".
a. Assuming Phil's wages were $27,000 and Linda's wages were $18,500 for 2021 and they had no other income, what is the maximum amount of their
deduction for contributions to a traditional IRA for 2021?
Phil
Linda
b. Assuming Phil's wages were $55,000 and Linda's wages were $71,000 for 2021 and they had no other income, what is the maximum amount of
their deduction for contributions to a traditional IRA for 2021?
Phil
Linda $
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
Step 1
The maximum contribution limit to Traditional IRA is $ 6000 per person or $ 12000 if MFJ. The phaseout limit is $ 198000 for MFJ
As the total earned income is less than the phaseout limit hence phase out is not applicable
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