R2 - Adjustments

Question 1

IRA = 3 types

Answer 1

1. Traditional IRA Deductible
2. Traditional IRA Nondeductible
3. Roth IRA

Question 2

Deductible IRA Max Contrib

Answer 2

< 50yo = $6K (unmarried); $12K (MFJ) or earned income
> 50yo = $7K (unmarried); $14K (MFJ) or earned income
> 70 1/2 yo = $0
+ $,1000 catch up if you’re >50yo.

Question 3

Deductible Traditional IRA limitations

Answer 3

No deduction allowed
- If you're in an ER sponsored plan.
- If PHO
Special Rule - Kike and Raikhan
- If  MFJ, and one of them does not have an ER sponsored plan, but the other one does, the first can take an IRA deduction based on AGI.

Question 4

Deductible Traditional IRA PHO

Answer 4

• $65,000 - $75,000 (S), unmarried
• $104,000 - $124,000 (MFJ)
  Special Rule:
• $196,000 - $206,000 (MFJ)
• $0 - $10,000 (MFS)

Question 5

2. Nondeductible Traditional IRA

Answer 5

• Used when deductible or Roth IRAs are not allowed.
• Distribution of principal is not taxed; but untaxed earnings are.
• MRD required to be made by 4/1 on year after TP turns 70 1/2 yo.
• NO PHO

Question 6

3. Roth IRA

Answer 6

• Not deductible deduction
• Earnings accumulate tax-free
• Distributions of both principal and interest are tax-free

Question 7

Roth IRA PHO:

Answer 7

• $122,000 - $137,000 (S), unmarried
• $193,000 - $203,000 (MFJ)
• $0 - $10,000 (MFS)

Question 8

Roth IRA Max Contrib

Answer 8

Same as Traditional IRA

Question 9

Student Loan Interest Expense

Answer 9

• Up to $2,500 exp; excess is lost.

- PHO: $70K - $85K (S); $140K - $170K (MFJ)

Question 10

HSA

Answer 10

• Contributions up to $3,550; $7,000 for families.

- +1,000 when 55>yo

Question 11

Phill KEOGH-an Plans

Answer 11

• Max deductible amt = Lesser of $57k or 20% of net SE earnings (after SE Tax).
• Max annual in addition to = limited to $56k or 100% SE earnings.