ACTIVE PARTICIPANT STATUS: EXAMPLE
01.Core Concepts
Charmaine and Neville are married and file jointly. Charmaine is a CFO who earns $165,000 per year and is an active participant in her employer’s qualified plan. She also has consulting income of $15,000 per year. Neville is a racecar driver with no taxable income. Can Neville contribute to a traditional IRA and is it deductible?