Roth IRAs
Response to the following questions:
1. Kenya and Carl Reed are ages 48 and 50, respectively. Their 2014 AGI is $188,520, most of which stems from taxable wages. Compute the maximum amounts Kenya and Carl can contribute to their respective Roth IRAs for 2014.
2. Kathy, age 40, is single and wants to contribute to a Roth IRA in 2014. Her AGI is $116,500. Compute the maximum contribution that Kathy may make to her Roth IRA. Where does she deduct this amount on her tax return?