Question: Pier, age 30, is married and files a joint return with his spouse. On February 15, 2017, Pier establishes a traditional IRA for himself and

Pier, age 30, is married and files a joint return with his spouse. On February 15, 2017, Pier

establishes a traditional IRA for himself and a spousal IRA for his spouse with an $11,000

contribution, $5,500 for himself and $5,500 for his wife. Pier's spouse earned $2,500

in 2016 from a part-time job, and their combined AGI is $64,000. Neither Pier

nor his spouse is an active participant in an employer-sponsored retirement plan.

a.

What amount of the contribution is deductible?

b.

To what year does the contribution apply? (Assume that an election is made to treat Pier's spouse as having no compensation.)

c.

Is the deduction reported as for AGI or from AGI?

d.

How would your answer to Part a change, if at all, if Pier

and his spouse were active participants in an employer-sponsored retirementplan?

e.

If a portion of the contribution is nondeductible in Part d, is it possible for Pier

to make a deductible and a nondeductible contribution in the same year? Explain.

f.

How would your answer to Part a change if Pier and his spouse's combined AGI were $155,000 in 2016 and Pier was an active participant in an employer-sponsored retirement plan?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Phil, age 30, is married and files a joint return with his spouse. On February 15, 2017, Phil establishes a traditional IRA for himself and a spousal IRA for his spouse with a $11,000 contribution,...

Q:

Porter, age 30, is married and files a joint return with his spouse. On February 15, 2020, Porter establishes a traditional IRA for himself and a spousal IRA for his spouse with an $12,000...

Q:

Please help me solve! Paul, age 30, is married and files a joint return with his spouse. On February 15, 2021, Paul establishes a traditional IRA for himself and a spousal IRA for his spouse with an...

Q:

Phil, age 30, is married and files a joint return with his spouse. On February 15, 2015, Phil establishes a traditional IRA for himself and a spousal IRA for his spouse with a $11,000 contribution,...

Q:

Phil, age 3 0 , is married and files a joint return with his spouse. On February 1 5 , 2 0 2 5 , Phil establishes a traditional IRA for himself and a spousal IRA for his spouse with a $ 1 4 , 0 0 0...

Q:

Phil, age 30, is married and files a joint return with his spouse. On February 15, 2020, Phil establishes a traditional IRA for himself and a spousal IRA for his spouse with a 512,000 contribution,...

Q:

5 6 . Phil, age 3 0 , is married and files a joint return with his spouse. On February 1 5 , 2 0 2 4 , Phil establishes a traditional IRA for himself and a spousal IRA for his spouse with a $ 1 3 , 0...

Q:

Phil, age 30, is married and files a joint return with his spouse. On February 15, 2021, Phil establishes a traditional IRA for himself and a spousal IRA for his spouse with an $12,000 contribution,...

Q:

Phil, age 30, is married and files a joint return with his spouse. On February 15, 2024, Phil establishes a traditional IRA for himself and a spousal IRA for his spouse with a \($13,000\)...

Q:

1:7-56 IRAS. Phil, age 30, is married and files a joint return with his spouse. On February 15, 2022, Phil establishes a traditional IRA for himself and a spousal IRA for his spouse with a $12,000...

Q:

For the following situations, indicate the date on which revenue would be recognized, assuming the accrual basis of accounting. _____________a. On June 10, a customer orders a product over the phone....

Q:

Galileo showed that, if air resistance is neglected, the ranges for projectiles whose angles of projection exceed or fall short of 45 by the same amount are equal. Prove Galileo's result.

Q:

8. In the city of Milford, applications for zoning changes go through a two-step process: a review by the planning commission and a final decision by the city council. At step 1 the planning...

Q:

last two options for the multiple choice are : performance management development A construction equipment manufacturer, Roswell Corporation, is focusing on becoming a leader in sustainability in...

Q:

What is the difference between a job description and a job specification? Using the Internet, research and develop a job description and job specifications of a healthcare job.

Q:

Describe the competency model. Do you think this is a good way to analyze the skills needed to perform in health care? Develop a model for a hospice care center and post.

Q:

Do you think providing internships is a valuable way to recruit in the healthcare industry? Would you participate in this process? Defend your answer.