Question

Joey, age 49, who is single, is not covered by another qualified plan and earns $124,000 (AGI is also $124,000) in 2019. How much can he contribute to a traditional IRA or to a Roth IRA in 2019?

Answer 1

Answer: traditional = $6000, Roth IRA= $5,200

Step-by-step explanation:

jOEY IS 49years old earning $124,000

For traditional IRA. He will contribute $6000 since in traditional IRA, The Contribution limits exist as $6,000 for 2019 for those under age 50, $7,000 for those 50 and older.

For a Roth IRA,

IF single an income falls between $122,000- #136,999, the following calculations wil;l be made since joey earns $124,000 and is single

$124,000-$122,000= $2,000

2000/15,000=0.13333

which will now be multiplied by the maximum amount he can contribute which is $6,000

0.13333x $6000= $799.99

$6,000- $799.99= $5,200