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Song Lee Prof. Mescall Acc 401 Homework 3 Chapter 19: 39 and 43 39) A. Govind earns $26,000 which is below the the beginning phase out so he can contribute the maximum amount of $5,000 and his wife can contribute all of her compensation income which is $600. But, since they are married they can contribute $10,000 together. Danos contributes 6% of $31,000 and his employer 3%. Danos contributes 0.06 * $31,000 = $1860 and his employer contributes $930 for a total of $2790. All of the contributions will be vested.’ Karli and Jacob married for 12 years and both are active participants in employer qualified retirement plans. AGI is $166,000, and earns $85,000 and $81,000 respectively. Traditional IRA: None, they are both active participants in employer qualified retirement plans reach the phase out limit of $95,000. None since they didn’t contribute. $3,000/$10,000 * $10,000 = $3,000 reduction. They can contribute $7,000. Roth IRAs are non-deductable. $4,000. B. 43) A. B. C. D. E.
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