IRA MEMO

John and Diane Gentry are a married couple. John is 55 years old, Diane is 49. In 2011, John earned a salary of $56,000. Diane earned a salary of $41,000. They have no other income. They file a joint 2011 tax return.
1. Assume neither John or Diane participate in a qualified employer-sponsored retirement plan.
a. What is the maximum each person can contribute to a Traditional IRA for 2011?
b. What is the maximum each person can contribute to a Roth IRA for 2011?

2. Assume John participates in a qualified employer-sponsored retirement plan, but Diane does not.
a. What is the maximum each person can contribute to a Traditional IRA for 2011?
b. What is the maximum each person can contribute to a Roth IRA for 2011?

3. Assume both John and Diane participate in a qualified employer-sponsored retirement plan.
a. What is the maximum each person can contribute to a Traditional IRA for 2011?
b. What is the maximum each person can contribute to a Roth IRA for 2011?