Answer the following independent questions with respect to a deductible IRA and § 401(k) contributions for 2016:
a. Govind, age 31, earns a salary of $26,000 and is not an active participant in any other qualified plan. His wife has $600 of compensation income. What is the maximum total deductible contribution to their IRAs?
b. Danos is a participant in a SIMPLE § 401(k) plan. He contributes 6% of his salary of $42,000, and his employer contributes 3%. What amount will be contributed for the year? What amount will be vested?