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# HW_3

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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.

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