Questions from General Taxation

Q: What is the maximum amount a 55-year-old taxpayer

What is the maximum amount a 55-year-old taxpayer and 52-year-old spouse can put into a Traditional or Roth IRA for 2016, assuming they earn $70,000 in total and are not participants in pension plans?...

Q: Barry is a single, 40-year-old software engineer

Barry is a single, 40-year-old software engineer earning $190,000 a year and is not covered by a pension plan at work. How much can he put into a Roth IRA in 2016?

Q: Bob is a single, 40-year-old doctor earning

Bob is a single, 40-year-old doctor earning $190,000 a year and is not covered by a pension plan at work. How much can he put into a deductible Traditional IRA in 2016?

Q: Dori is 58 years old and retired in 2016. She receives

Dori is 58 years old and retired in 2016. She receives a pension of $25,000 a year and no other income. She wishes to put the maximum allowed into an IRA. How much can she contribute to her IRA?

Q: During 2016, Jerry is a self-employed therapist, and

During 2016, Jerry is a self-employed therapist, and his net earned income is $160,000 from his practice. Jerry’s SEP Plan, a defined contribution plan, states that he will contribute the maximum amou...

Q: Sharon transfers to Russ a life insurance policy with a cash surrender

Sharon transfers to Russ a life insurance policy with a cash surrender value of $35,000 and a face value of $100,000 in exchange for real estate. Russ continues to pay the premiums on the policy until...

Q: Tony is a 45-year-old psychiatrist who has net

Tony is a 45-year-old psychiatrist who has net earned income of $300,000 in 2016. What is the maximum amount he can contribute to his SEP for the year?

Q: Anthony, a self-employed plumber, makes a maximum contribution

Anthony, a self-employed plumber, makes a maximum contribution to a SEP for his employee, Debra. Debra’s compensation is $40,000 for the year. How much is he allowed to contribute to the plan for Debr...

Q: During 2016, Jill, age 39, participated in a Section

During 2016, Jill, age 39, participated in a Section 401(k) plan which provides for maximum employee contributions of 12 percent. Jill’s salary was $90,000 for the year. Jill elects to make the maximu...

Q: Telly, age 38, has a $140,000 IRA

Telly, age 38, has a $140,000 IRA with Blue Mutual Fund. He has read good things about the management of Green Mutual Fund, so he opens a Green Fund IRA. Telly asked for and received his balance from...