Kathleen and Glenn decide that this is the year to begin getting serious about saving for their retirement by participating in their employers' § 401 (k) plans. As a result, they each have $3,000 of their salary set aside in their qualified plans. Calculate the credit for certain retirement plan contributions available to Kathleen and Glenn if the AGI on their joint return is $35,000. Kathleen and Glenn persuade their dependent 15-year-old son, Joel, to put $500 of his part-time earnings into a Roth IRA during the year. What is the credit for certain retirement plan contributions available to Joel

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Sarah Lyons

3 April, 15:06

Kathleen and Glenn decide that this is the year to begin getting serious about saving for their retirement by participating in their employers' § 401 (k) plans. As a result, they each have $3,000 of their salary set aside in their qualified plans. Calculate the credit for certain retirement plan contributions available to Kathleen and Glenn if the AGI on their joint return is $35,000. Kathleen and Glenn persuade their dependent 15-year-old son, Joel, to put $500 of his part-time earnings into a Roth IRA during the year. What is the credit for certain retirement plan contributions available to Joel

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Yesenia Patel · Answer 1

A. The credit for K & G is $2,000

B. Joel's credit is $0

Explanation:

A. The maximum credit for a single taxpayer is $2000, $4000 when Married, filing jointly. Also, when you make $38,500 or less, you get %50 of that for your credit. (4000 x 50%) = 2000

B. I'm not sure of why.