A married couple filing a joint return are separately employed. The husband's employer offers a qualified pension plan and he is an active participant. The wife is self employed and earns $50,000 a year. Which of the following is true regarding IRA contributions made by this couple?[A] Neither the husband or wife are allowed to make tax deductible contributions, but both could make after tax contributions.[B] The husband could only make an after tax contribution, whereas the wife could make a tax deductible contribution.[C] Neither would be allowed to make any type of contribution.[D] The husband could not make any type of contribution, whereas the wife could make a tax deductible contribution.

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Emmett Walters

18 September, 19:05

A married couple filing a joint return are separately employed. The husband's employer offers a qualified pension plan and he is an active participant. The wife is self employed and earns $50,000 a year. Which of the following is true regarding IRA contributions made by this couple?[A] Neither the husband or wife are allowed to make tax deductible contributions, but both could make after tax contributions.[B] The husband could only make an after tax contribution, whereas the wife could make a tax deductible contribution.[C] Neither would be allowed to make any type of contribution.[D] The husband could not make any type of contribution, whereas the wife could make a tax deductible contribution.

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Choi · Answer 1

D) The husband could not make any type of contribution, whereas the wife could make a tax deductible contribution.

Explanation:

The husband is already participating in his employer's pension plan, so he cannot make tax deductible contributions to an IRA account. On the other hand, the wife is allowed to make tax deductible contributions herself. The husband would have to make after tax contributions similar to a Roth IRA account.