[SuperJustin1978]

I’m using Becker and on page R2-5 there is an example:

Kristi, a single taxpayer, is an active participant in her employers pension plan. Kristi’s 2013 AGI is $61,000. Kristi’s maximum 2013 IRA contribution is $4,000, calculated as follows:

2013 AGI $61,000

Less (59,000)

Excess over $56,000 2,000

Divided by $10,000 (phase out range) 10,000

Phase out percentage 20%

Times Maximum IRA deduction 5,000

Amount of IRA Phased out (1,000)

2009 Maximum Deduction 4,000

Is that $59,000 correct, or did I discover a typo?

Where is that $10,000 phase out range coming from?

[LaxCPA]

The $59,000 is correct if you look at IRS publication 590 table 1-2. Then I get a little confused by the question, The maximum contribution in 2013 is $5,500 not $5,000. So the maximum deductible IRA contribution she can make is $4,400, you can look at worksheet 1-2 of publication 590 to illustrate how to come up with that number. She is free to make another $1,100 contribution but it is not deductible. I hope that I am correct and that helps with your question.

[LaxCPA]

The $59,000 is correct if you look at IRS publication 590 table 1-2. Then I get a little confused by the question, The maximum contribution in 2013 is $5,500 not $5,000. So the maximum deductible IRA contribution she can make is $4,400, you can look at worksheet 1-2 of publication 590 to illustrate how to come up with that number. She is free to make another $1,100 contribution but it is not deductible. I hope that I am correct and that helps with your question.

[Author]

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