B) Four single individuals Donald, Bernie, Kamala and Warren come into your office seeking your sage advice and financial wisdom. Donald, age 63 has no job and is living off his substantial stock and bond portfolio which gives him $50,000 of annual interest and dividend income.
Berni, age 68 works as a CPA and has a salary of $250,000 with no retirement plan
Kamala, age 35 is an attorney with a salary of $50,000 with a 401(k) Defined Contribution Plan.
Warren, age 45 is a CEO making $250,000 and a Defined Benefit pension plan.
a) Which of these four can make a maximum contribution to a Traditional IRA? How much is that contribution for each?
b) Which of these four can get a full tax deduction for their traditional IRA contribution?
c) Which of these four can make a maximum contribution to a Roth IRA?
d) Which of these four can get a full tax deduction for their Roth IRA contribution?