Lois and Kam are married and file a joint return. Lois earns $64,500 and Kam earns $30,000.

Question:

Lois and Kam are married and file a joint return. Lois earns $64,500 and Kam earns $30,000. Their adjusted gross income is $103,000. Determine the maximum IRA contribution and deduction in each of the following cases:
a. Neither Lois nor Kam is covered by an employee-sponsored pension plan.
b. Both Kam and Lois are covered by an employee-sponsored pension plan.
c. Assume that only Kam is covered by an employer-sponsored pension plan and that their adjusted gross income is $154,000.