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There seems to be a discrepancy in the figures given in the problem with some given in the solution.
The question states that :
Rita Spano is an active participant in a company retirement plan. Her husband, John, age 45, works for a company that does not have a retirement plan. The Spanos’ joint adjusted gross income for 2015 is $187,000. John contributes $4,000 to an IRA for himself. How much of this $4,000 contribution for John can the Spanos deduct on their 2015 joint return?
It also states in the solution that their maximum IRA contribution is $8,000 ($4,000 x 2)
Where does that maximum contribution amount come from? I thought that it was $5,500 per individual, with the deduction phased out over certain AGI amounts.
I see that $4,000 is the amount they contributed, but could they have not contributed more?
Was the question partially updated from an older one, and the max contribution amount not updated?
Thanks!
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