Question - Emilio and Judith Frost are married a file joint return. Emilio earned a salary of $104,000 in 2016 from his job are Karma Corp., where Emilio is covered by his employer's pension plan. Judith, who worked part-time in 2016 and earned $2,000, is not covered by an employer's pension plan. The Frosts do not itemize their deductions. Assuming they are both age 48 and their adjusted gross income for 2016 is $125,000, what is the maximum that they can deduct for contributions to their IRAs on their 2016 return?
Ellen Smit, who is divorced, received taxable alimony of $34,000 in 2016. In addition, she received $900 in earnings from a part-time job in 2016. What was the maximum IRA contribution that Ellen could have made for 2016, which she could have deducted on her 2016 individual tax return, assuming that she is age 34 and everything was done on a timely basis?