Chapter 5, Problem 6P

To determine

Introduction:There are two types of individual retirement accounts in the United States, the traditional IRA and Roth IRA. Traditional IRA allows the deduction of annual contributions and retirement distributions are taxable. While the annual contribution to Roth IRA is not deductible and retirement distributions are non-taxable. In addition earnings on both are not taxable in the current year.

The maximum amount a 55 year old taxpayer and 52 year old spouse can put into a traditional or Roth IRA for 2019 assuming they earn $70,000.