Mr. and Mrs. Marlo file a joint tax return. Each spouse contributed $5,000 to a traditional IRA. In each of the following cases, compute the deduction for these contributions. The AGI in each case is before any deduction.
a. Mr. Marlo is an active participant in his employer’s qualified profit-sharing plan. Mrs. Marlo is self-employed and doesn’t have a Keogh plan. Their AGI is $110,000.
b. Both spouses are active participants in their employer’s qualified pension plan. Their AGI is $73,000.
c. Both spouses are active participants in their employer’s qualified Section 401(k) plan. Their AGI is $218,500.
d. Neither spouse is an active participant in their employer’s qualified ESOP. Their AGI is $469,000.