Problem:
On February 15, 2013, Jamal, who is single and age 30, establishes an IRA and contributes $5,000 to the account. Jamal's adjusted gross income is $88,000 in 2013 and $83,000 in 2014. Jamal is an active participant in an employer-sponsored retirement plan in 2013, but not in 2014.
Required:
Question: What amount of the contribution is deductible? In what year is it deductible?
Note: Be sure to show how you arrived at your answer.