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Question 3. Gene and Dixie, husband and wife (ages 35 and 32), both work. They have an adjusted gross income of $95,000 in 2017, and they are filing a joint income tax return. Both have an employer-provided retirement plan at work. What is the maximum IRA contribution they can make? How much of that contribution is tax deductible?

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anthougo

The maximum IRA contribution for 2017 and 2018 was $5,500 and the amount is fully tax-deductible.

What is an IRA contribution?

An individual retirement account (IRA) contribution is a tax-advantaged contribution that allows the taxpayer to save money for retirement.

Given the couple's adjusted gross income of $95,000 in 2017, the maximum IRA contribution is $5,500 fully tax-deductible.

IRA contributions fall into:

  • Traditional IRA (tax on withdrawals)
  • Roth IRA (after-tax contributions).

Thus, the maximum IRA contribution for 2017 and 2018 was $5,500 and the amount is fully tax-deductible.

Learn more about IRA contributions at https://brainly.com/question/2108625

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