Ross is single and maintains an IRA. During a trip to Las Vegas in 2011, he wins $14,000 at the roulette wheel. He decides to put half his earnings in his IRA and spend the other half on a trip to Europe. At the end of 2011, the total assets in his IRA are $29,000. Because he is covered by his employer’s pension plan, Ross does not deduct any portion of his $7,000 IRA contribution. His salary for the year is $56,000. Write a letter to Ross advising him of the tax consequences of his actions.