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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.a. Assuming Phil’s wages were $27,000 and Linda’s wages were $18,500 for 2010 and they had no other income, what is the maximum amount of their deductible contributions to an IRA for 2010?b. Assuming Phil’s wages were $49,000 and Linda’s wages were $63,000 for 2010 and they had no other income, what is the maximum amount of their deductible contributions to an IRA for 2010?
Solution:a. Phil’s wagesLinda’s wages 270001850045500 The maximum amount of their deductible contributions to an IRA for 2010 is b. Phil’s wagesLinda’s wages 10%15% 1675028750 16754313…
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