Case Study 6: Employer Retirement Plans

Angela and Joe are married and plan to file a joint return. Joe, age 23, is not covered by a retirement plan at work, but Angela, age 25, is. Joe earned $25,000 and Angela earned $20,000; their modified AGI is $45,000. Because their combined modified AGI is less than the threshold limit, both Joe and Angela may contribute $6,500 to their traditional IRAs.

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