CRPC QUESTIONS AND ANSWERS
Diversificationjc-jcanswer--
Acquiringjcassetsjcwithjclowjcorjcnegativejccorrelationsjctojceachjcotherjcwithjcthejcgoaljcofjclo
weringjcoveralljcrisk
Correlationjc-jcanswer---
jcajcrelativejcmeasurejcofjcthejcdegreejctojcwhichjcthejcreturnsjcofjctwojcassetsjcmovejctogethe
rjc
-jcrangejcfromjc+1.0jctojc-1.0
-jcinjcpracticejcnegativejccorrelationsjcarejcrare
-jcthejcfurtherjcajccorrelationjcisjcfromjc+1.0,jcthejcmorejcdiversified
Assetjcallocationjc-jcanswer---
jcthejcapportioningjcofjcavailablejcfundsjcamongjcajcnumberjcofjcassetjcclassesjcinjcajcwayjcth
atjcmeetsjcthejcneedsjcofjcajcparticularjcclient,jcdampensjcthejceffectsjcofjcperiodicjcmarketjcfl
uctuations,jcandjcmeetsjcinvestmentjcgoals
Fourjcstepsjcinjcthejcassetjcallocationjcprocessjc-jcanswer--
1)jcselectjcassetjcclassesjctojcbejcrepresentedjc
2)jcdeterminejcthejcpercentagejcthatjceachjcassetjcclassjcshouldjcrepresentjcinjcthejctotaljcpo
rtfolio
3)jcSelectjcindividualjcsecurities
4)jcReviewjcandjcrebalance
StrategicjcAssetjcAllocationjc-jcanswer---
jcdeterminejcassetjcmixjcthatjcprovidesjcoptimaljcbalancejcofjcexpectedjcriskjcandjcRORjc
-jcassetjcclassesjcselectedjcandjc%jcweightjcdeterminedjc
-jcUsedjctojcdevelopjclong-termjcallocationjcpolicy
-jcutilizesjcrebalancingjctojcmaintainjctargetedjcweight
TacticaljcAssetjcAllocationjc-jcanswer---
jcusedjctojcdevelopjcshortjctermjcstrategiesjctojcexploitjcchangesjcinjcmarketjcconditionsjc
-jcofterjcviewedjcasjcajccontrarianjcstrategyjc
-
jcperiodicjcrevisionsjcofjcassetjcmix;jcmovingjcfundsjcfromjcoverjcvaluedjcinvestmentsjctojcun
dervaluedjcinvestmentsjc
-jcmarketjctimingjcstrategy
Core-Satellitejcassetjcallocationjc-jcanswer--70-
80%jcinvestedjcinjcbroadjcindexjcfundjcorjcetfsjc
-
jcremainingjcsatellitejcconsistsjcofjcactivelyjcmanagedjcMF'sjcinjcnichesjcsuchjcasjcsectorjcfun
dsjcorjcaltjcinvestmentsjclikejchedgejcfunds
ContrarianjcStrategyjc-jcanswer--
,Dollar-Costjcaveragingjc-jcanswer---jcinvestingjcregularjcamountsjcatjcregularjcintervals
-jcreducejcmarketjctimingjcrisk,jcimprovejccostjcperjcshare
LowjcP/Ejcstrategyjc-jcanswer--Ratiojcofjc1=jcfairjcvalue
Ratiojc>jc1=jcovervaluedjc
Ratiojc<jc1=jcundervaluedjc
**jcThejclong-termjcaveragejcP/Ejcforjcstocksjcisjc16
BondjcInvestmentjcstrategiesjc(2)jc-jcanswer--
1)jcLadder:jcOwningjcequaljcamountsjcofjcbondsjcalongjcwithjcmaturitiesjcofjcequaljcintervals
;jcex.jc50kjcofjcbondsjcwithjc10kjceachjcinjc2,4,6,8,10jcyearjcmaturitiesjc
2)jcBarbell:jcOwningjcshort-termjcandjclong-
termjcbonds,jceachjcwithjcajcladder;jcex.jc100kjcofjcbondsjcwithjc10kjceachjcinjc1,2,3,4,5jcyearj
cmaturitiesjcandjcinjc16,17,18,19,20jcyearjcmaturities
SystematicjcRiskjc-jcanswer--P-purchasingjcpowerjcrisk
R-jcreinvestmentjcrisk
I-jcinterestjcratejcrisk
M-jcmarketjcriskjc
E-jcexchangejcratejcrisk
SocialjcSecurity-jcFullyjcinsuredjc-jcanswer---
jchavingjc10jcyearsjcofjcemploymentjccoveredjcbyjcsocialjcsecurity;jcexpressedjcasjc"40jcquar
tersjcofjccoverage"
-jcMustjcbejcfullyjcinsuredjcforjcretirementjcbenefitsjc
-
jcfullyjcinsuredjcworkersjcarejcalsojceligiblejcforjcdisabilityjcifjchejchasjcearnedjcatjcleastjc20jcwo
rkjccreditsjcinjclastjc10jcyears
SocialjcSecurity-jccurrentlyjcinsuredjc-jcanswer---
jcindividualjcmustjchasjcatjcleastjc6jcquartersjcofjccoveragejcinjcthejc13-
quarterjcperiodjcproceedingjcthejceventjcforjcwhichjceligibilityjcisjcsoughtjc
-jcchild'sjcbenefit,jcmother/fathersjcbenefits,jcandjclump-
sumjcdeathjcbenefitjcarejcavailablejcifjcajcworkerjcisjconlyjccurrentlyjcinsuredjcatjcdeath
ComponentsjcofjcSSjccalculationjc-jcanswer---jcagejchejcstartsjc
-jcearningsjchistory
SSjccalculationjcbeforejcfulljcretirementjcagejc-jcanswer---
jcPaymentjcreducedjcbyjc5/9thjcofjc1%jcforjceachjcmonthjcfiledjcbeforejcFRA,jcupjctojc36jcmont
hsjc
-
jcPaymentjcisjcreducedjcbyjc5/12thsjcofjc1%jcforjceachjcmonthjcfiledjcearlyjcinjcexcessjcofjc36jc
months
SSjccalculationjcafterjcfulljcretirementjcagejc-jcanswer---
jcPaymentjcincreasesjcbyjcaboutjc8%jceachjcyearjctheyjcdelay,jcuntiljcmaximumjcyearjc70
-jcactualjcmathjcisjc2/3jcforjceachjcmonth
,SocialjcSecurityjcmilestonesjc-jcanswer--Ages
50:jcdisabledjcsurvivorsjccanjcstartjcreceivingjcbenefits
60:jcnondisabledjcsurvivorsjccanjcstartjcreceivingjc
62:jcearliestjconejccanjcstartjcreceivingjcbenefitsjcatjcreducedjcrate
65-67:jcFRA,jcdependingjconjcbirthjcyear
70:jcdelayedjcretirementjcage
SocialjcSecurityjcincomejccapjc-jcanswer--$15,720
-
jcThosejcwhojcarejcunderjcFRAjcandjcworkingjcwilljclosejc$1jcSSjcbenefitjcforjceveryjc$2jctheyjc
earnjcabovejc$15,720
-jcAtjcFRAjcitjcisjcreducedjctojc$1jcforjceveryjc$3jcearned
AfterjcFRAjctherejcisjcnojcreduction
MaxjcprovisionaljcincomejcforjcSSjc-jcanswer--Singlejcorjcheadjcofjchousehouse:
Tax-freejcifjcprovisionaljcincomejcisjclessjcthanjc25k
Filingjcjointly:
Taxjcfreejcifjcprovisionaljcincomejcisjclessjcthanjc32k
Provisionaljcincomejc-jcanswer--
Provisionaljcincome=AGI(excludingjcSS)jc+Nontaxablejcinterest(munijcbonds)jc+jc1/2(SSj
cbenefit)
SinglejcprovisionaljcincomejcSSjctaxablejc%jc-jcanswer--25k-34k:jc50%
34k+:jc85%
JointlyjcprovisionaljcincomejcSSjctaxablejc%jc-jcanswer--32k-44k:jc50%
44k+:85%
maximumjctaxablejcSSjcamountjc-jcanswer--85%jcofjcTotaljcSSjcbenefit
Spousaljcbenefitjc-jcanswer---jcPayjcspousejcajcmaximumjcofjc50%jcofjcearnersjcPIA
WhatjctaxjcfundsjcthejcSocialjcSecurityjcTrustjcFundjc-jcanswer--Payrolljctaxes;jcFICA
WhatjcisjcthejcFICAjctax;jchowjcisjcitjcsplitjcupjc-jcanswer--
15.3%;jcThejcemployerjcandjcemployeejceachjcpayjc6.2%jcforjcold-
age,jcsurvivorsjcandjcdisabilityjcinsurancejc(OASDI)jcandjc1.45%jceachjcforjchospitaljcinsura
nce
SocialjcSecurityjcWagejcBasejc-jcanswer--$118,500
Coveredjcemploymentjc-jcanswer--
Anyjcpositionjcthatjcparticipatesjcinjcsocialjcsecurityjcsystem
Excluded
-jcRailroadjcemployees
-jcFedjcgovjcemployeesjchiredjcbeforejc1984
, AveragejcSSjcbenefitjc-jcanswer--$1300jcpm
Maxjcbenefitjc-jcanswer--$2639jcpm
QuarterjcofjcCoveragejc-jcanswer--earnedjcafterjc$1260jcofjcearningsjcinjcyearjc
-jcmostjcyoujccanjcearnjcinjc1jcyearjcisjc4jccreditsjcinjcyearjc
=jc$5040jcinjcyear
needjc40jcquartersjcofjccredit
Fullyjcinsuredjc-jcanswer--EligiblejcforjcalljcSSjcbenefitsjc
-jccreditsjcneededjcincreasejcwithjcage,jcupjctojcmaxjcofjc40
Currentlyjcinsuredjc-jcanswer--
havejcearnedjcatjcleastjc6jccreditsjcduringjcpreviousjc13jcquartersjcbeforejcdeath/disability
-jceligiblejcforjcsomejcsurvivorjcbenefits
Averagejcindexedjcmonthlyjcearningsjc-jcanswer--
usedjctojcdeterminejcthejcamountjcofjcssjcyoujcwilljcreceivejc
-jcTOPjc35jcyearsjcofjcearnings/420jc(monthsjcinjc35jcyears)jc=AIME
**jcifjcclientjcdoesn'tjchavejc35jcyears,jcanyjcmissedjcyearsjcwilljcbejcfactoredjcasjc0's
FulljcRetirementjcAgejc(FRA)jc-jcanswer--bornjc1960jcorjclater:jc67
bornjc1937jcorjcearlier:jc65jc
bornjc1943-1954:jc66
PrimaryjcInsurancejcAmountjc(PIA)jc-jcanswer--Benefitjcreceivedjcatjcfulljcretirementjcagejc
-jchigherjcearnersjcreceivejcajcsmallerjcpercentagejcofjctheirjcAIMEjcthanjclow-
wagejcearners-smallerjc"replacementjcrate"
-jcAnnualjcCOLAjcbasedjconjcCPI
IRAjcstatutoryjcrequirementsjc-jcanswer---
jcindividualjcmustjchavejccompensationjc(earnedjcincome)
-jcmustjcbejcestablishedjcexclusivelyjcforjcanjcindividual
-jcmustjcbejcestablishedjcasjcajccustodialjcaccountjcorjcajctrustjcsetjcupjcinjcthejcUSjc
-jcdocumentsjcmustjcbejcinjcwritingjc
-jccontributionsjcmustjcbejcmadejcinjccashjc
-jcmaxjccontributionjccannotjcexceedjc100%jcofjccompensationjcorjc5500jc
-jccontributionsjcforjcgivenjcyearjcmustjcbejcmadejcbeforejcApriljc15thjctaxjcdeadlinejc
-jccannotjcbejcinvestedjcinjclifejcinsurancejc
-jcRMDsjcmustjcbeginjcbyjcapriljc1jcinjcthejcyearjcfollowingjcturningjc70.5
PenaltyjctaxjconjcexcessjccontributionjctojcIRAjc-jcanswer---
jc6%jcpenaltyjctaxjcunlessjcexcessjccontributionjcandjcitsjcearningsjcarejcwithdrawnjcbyjctaxjcr
eturnjcfilingjcduejcdate
SinglejctaxpayerjcIRAjcphasejcoutjcrange;jcifjcthejcindividualjcisjcanjcactivejcparticipantjcinjcajc
company-maintainedjcretirementjcplanjc-jcanswer--$61,000-$71,000
AllowablejcIRAjcdeductionjclimitjcequationjc-jcanswer--
IRAjccontributionjclimitjcxjc((UpperjcLimit-AGI)/phaseoutjcrange)
Diversificationjc-jcanswer--
Acquiringjcassetsjcwithjclowjcorjcnegativejccorrelationsjctojceachjcotherjcwithjcthejcgoaljcofjclo
weringjcoveralljcrisk
Correlationjc-jcanswer---
jcajcrelativejcmeasurejcofjcthejcdegreejctojcwhichjcthejcreturnsjcofjctwojcassetsjcmovejctogethe
rjc
-jcrangejcfromjc+1.0jctojc-1.0
-jcinjcpracticejcnegativejccorrelationsjcarejcrare
-jcthejcfurtherjcajccorrelationjcisjcfromjc+1.0,jcthejcmorejcdiversified
Assetjcallocationjc-jcanswer---
jcthejcapportioningjcofjcavailablejcfundsjcamongjcajcnumberjcofjcassetjcclassesjcinjcajcwayjcth
atjcmeetsjcthejcneedsjcofjcajcparticularjcclient,jcdampensjcthejceffectsjcofjcperiodicjcmarketjcfl
uctuations,jcandjcmeetsjcinvestmentjcgoals
Fourjcstepsjcinjcthejcassetjcallocationjcprocessjc-jcanswer--
1)jcselectjcassetjcclassesjctojcbejcrepresentedjc
2)jcdeterminejcthejcpercentagejcthatjceachjcassetjcclassjcshouldjcrepresentjcinjcthejctotaljcpo
rtfolio
3)jcSelectjcindividualjcsecurities
4)jcReviewjcandjcrebalance
StrategicjcAssetjcAllocationjc-jcanswer---
jcdeterminejcassetjcmixjcthatjcprovidesjcoptimaljcbalancejcofjcexpectedjcriskjcandjcRORjc
-jcassetjcclassesjcselectedjcandjc%jcweightjcdeterminedjc
-jcUsedjctojcdevelopjclong-termjcallocationjcpolicy
-jcutilizesjcrebalancingjctojcmaintainjctargetedjcweight
TacticaljcAssetjcAllocationjc-jcanswer---
jcusedjctojcdevelopjcshortjctermjcstrategiesjctojcexploitjcchangesjcinjcmarketjcconditionsjc
-jcofterjcviewedjcasjcajccontrarianjcstrategyjc
-
jcperiodicjcrevisionsjcofjcassetjcmix;jcmovingjcfundsjcfromjcoverjcvaluedjcinvestmentsjctojcun
dervaluedjcinvestmentsjc
-jcmarketjctimingjcstrategy
Core-Satellitejcassetjcallocationjc-jcanswer--70-
80%jcinvestedjcinjcbroadjcindexjcfundjcorjcetfsjc
-
jcremainingjcsatellitejcconsistsjcofjcactivelyjcmanagedjcMF'sjcinjcnichesjcsuchjcasjcsectorjcfun
dsjcorjcaltjcinvestmentsjclikejchedgejcfunds
ContrarianjcStrategyjc-jcanswer--
,Dollar-Costjcaveragingjc-jcanswer---jcinvestingjcregularjcamountsjcatjcregularjcintervals
-jcreducejcmarketjctimingjcrisk,jcimprovejccostjcperjcshare
LowjcP/Ejcstrategyjc-jcanswer--Ratiojcofjc1=jcfairjcvalue
Ratiojc>jc1=jcovervaluedjc
Ratiojc<jc1=jcundervaluedjc
**jcThejclong-termjcaveragejcP/Ejcforjcstocksjcisjc16
BondjcInvestmentjcstrategiesjc(2)jc-jcanswer--
1)jcLadder:jcOwningjcequaljcamountsjcofjcbondsjcalongjcwithjcmaturitiesjcofjcequaljcintervals
;jcex.jc50kjcofjcbondsjcwithjc10kjceachjcinjc2,4,6,8,10jcyearjcmaturitiesjc
2)jcBarbell:jcOwningjcshort-termjcandjclong-
termjcbonds,jceachjcwithjcajcladder;jcex.jc100kjcofjcbondsjcwithjc10kjceachjcinjc1,2,3,4,5jcyearj
cmaturitiesjcandjcinjc16,17,18,19,20jcyearjcmaturities
SystematicjcRiskjc-jcanswer--P-purchasingjcpowerjcrisk
R-jcreinvestmentjcrisk
I-jcinterestjcratejcrisk
M-jcmarketjcriskjc
E-jcexchangejcratejcrisk
SocialjcSecurity-jcFullyjcinsuredjc-jcanswer---
jchavingjc10jcyearsjcofjcemploymentjccoveredjcbyjcsocialjcsecurity;jcexpressedjcasjc"40jcquar
tersjcofjccoverage"
-jcMustjcbejcfullyjcinsuredjcforjcretirementjcbenefitsjc
-
jcfullyjcinsuredjcworkersjcarejcalsojceligiblejcforjcdisabilityjcifjchejchasjcearnedjcatjcleastjc20jcwo
rkjccreditsjcinjclastjc10jcyears
SocialjcSecurity-jccurrentlyjcinsuredjc-jcanswer---
jcindividualjcmustjchasjcatjcleastjc6jcquartersjcofjccoveragejcinjcthejc13-
quarterjcperiodjcproceedingjcthejceventjcforjcwhichjceligibilityjcisjcsoughtjc
-jcchild'sjcbenefit,jcmother/fathersjcbenefits,jcandjclump-
sumjcdeathjcbenefitjcarejcavailablejcifjcajcworkerjcisjconlyjccurrentlyjcinsuredjcatjcdeath
ComponentsjcofjcSSjccalculationjc-jcanswer---jcagejchejcstartsjc
-jcearningsjchistory
SSjccalculationjcbeforejcfulljcretirementjcagejc-jcanswer---
jcPaymentjcreducedjcbyjc5/9thjcofjc1%jcforjceachjcmonthjcfiledjcbeforejcFRA,jcupjctojc36jcmont
hsjc
-
jcPaymentjcisjcreducedjcbyjc5/12thsjcofjc1%jcforjceachjcmonthjcfiledjcearlyjcinjcexcessjcofjc36jc
months
SSjccalculationjcafterjcfulljcretirementjcagejc-jcanswer---
jcPaymentjcincreasesjcbyjcaboutjc8%jceachjcyearjctheyjcdelay,jcuntiljcmaximumjcyearjc70
-jcactualjcmathjcisjc2/3jcforjceachjcmonth
,SocialjcSecurityjcmilestonesjc-jcanswer--Ages
50:jcdisabledjcsurvivorsjccanjcstartjcreceivingjcbenefits
60:jcnondisabledjcsurvivorsjccanjcstartjcreceivingjc
62:jcearliestjconejccanjcstartjcreceivingjcbenefitsjcatjcreducedjcrate
65-67:jcFRA,jcdependingjconjcbirthjcyear
70:jcdelayedjcretirementjcage
SocialjcSecurityjcincomejccapjc-jcanswer--$15,720
-
jcThosejcwhojcarejcunderjcFRAjcandjcworkingjcwilljclosejc$1jcSSjcbenefitjcforjceveryjc$2jctheyjc
earnjcabovejc$15,720
-jcAtjcFRAjcitjcisjcreducedjctojc$1jcforjceveryjc$3jcearned
AfterjcFRAjctherejcisjcnojcreduction
MaxjcprovisionaljcincomejcforjcSSjc-jcanswer--Singlejcorjcheadjcofjchousehouse:
Tax-freejcifjcprovisionaljcincomejcisjclessjcthanjc25k
Filingjcjointly:
Taxjcfreejcifjcprovisionaljcincomejcisjclessjcthanjc32k
Provisionaljcincomejc-jcanswer--
Provisionaljcincome=AGI(excludingjcSS)jc+Nontaxablejcinterest(munijcbonds)jc+jc1/2(SSj
cbenefit)
SinglejcprovisionaljcincomejcSSjctaxablejc%jc-jcanswer--25k-34k:jc50%
34k+:jc85%
JointlyjcprovisionaljcincomejcSSjctaxablejc%jc-jcanswer--32k-44k:jc50%
44k+:85%
maximumjctaxablejcSSjcamountjc-jcanswer--85%jcofjcTotaljcSSjcbenefit
Spousaljcbenefitjc-jcanswer---jcPayjcspousejcajcmaximumjcofjc50%jcofjcearnersjcPIA
WhatjctaxjcfundsjcthejcSocialjcSecurityjcTrustjcFundjc-jcanswer--Payrolljctaxes;jcFICA
WhatjcisjcthejcFICAjctax;jchowjcisjcitjcsplitjcupjc-jcanswer--
15.3%;jcThejcemployerjcandjcemployeejceachjcpayjc6.2%jcforjcold-
age,jcsurvivorsjcandjcdisabilityjcinsurancejc(OASDI)jcandjc1.45%jceachjcforjchospitaljcinsura
nce
SocialjcSecurityjcWagejcBasejc-jcanswer--$118,500
Coveredjcemploymentjc-jcanswer--
Anyjcpositionjcthatjcparticipatesjcinjcsocialjcsecurityjcsystem
Excluded
-jcRailroadjcemployees
-jcFedjcgovjcemployeesjchiredjcbeforejc1984
, AveragejcSSjcbenefitjc-jcanswer--$1300jcpm
Maxjcbenefitjc-jcanswer--$2639jcpm
QuarterjcofjcCoveragejc-jcanswer--earnedjcafterjc$1260jcofjcearningsjcinjcyearjc
-jcmostjcyoujccanjcearnjcinjc1jcyearjcisjc4jccreditsjcinjcyearjc
=jc$5040jcinjcyear
needjc40jcquartersjcofjccredit
Fullyjcinsuredjc-jcanswer--EligiblejcforjcalljcSSjcbenefitsjc
-jccreditsjcneededjcincreasejcwithjcage,jcupjctojcmaxjcofjc40
Currentlyjcinsuredjc-jcanswer--
havejcearnedjcatjcleastjc6jccreditsjcduringjcpreviousjc13jcquartersjcbeforejcdeath/disability
-jceligiblejcforjcsomejcsurvivorjcbenefits
Averagejcindexedjcmonthlyjcearningsjc-jcanswer--
usedjctojcdeterminejcthejcamountjcofjcssjcyoujcwilljcreceivejc
-jcTOPjc35jcyearsjcofjcearnings/420jc(monthsjcinjc35jcyears)jc=AIME
**jcifjcclientjcdoesn'tjchavejc35jcyears,jcanyjcmissedjcyearsjcwilljcbejcfactoredjcasjc0's
FulljcRetirementjcAgejc(FRA)jc-jcanswer--bornjc1960jcorjclater:jc67
bornjc1937jcorjcearlier:jc65jc
bornjc1943-1954:jc66
PrimaryjcInsurancejcAmountjc(PIA)jc-jcanswer--Benefitjcreceivedjcatjcfulljcretirementjcagejc
-jchigherjcearnersjcreceivejcajcsmallerjcpercentagejcofjctheirjcAIMEjcthanjclow-
wagejcearners-smallerjc"replacementjcrate"
-jcAnnualjcCOLAjcbasedjconjcCPI
IRAjcstatutoryjcrequirementsjc-jcanswer---
jcindividualjcmustjchavejccompensationjc(earnedjcincome)
-jcmustjcbejcestablishedjcexclusivelyjcforjcanjcindividual
-jcmustjcbejcestablishedjcasjcajccustodialjcaccountjcorjcajctrustjcsetjcupjcinjcthejcUSjc
-jcdocumentsjcmustjcbejcinjcwritingjc
-jccontributionsjcmustjcbejcmadejcinjccashjc
-jcmaxjccontributionjccannotjcexceedjc100%jcofjccompensationjcorjc5500jc
-jccontributionsjcforjcgivenjcyearjcmustjcbejcmadejcbeforejcApriljc15thjctaxjcdeadlinejc
-jccannotjcbejcinvestedjcinjclifejcinsurancejc
-jcRMDsjcmustjcbeginjcbyjcapriljc1jcinjcthejcyearjcfollowingjcturningjc70.5
PenaltyjctaxjconjcexcessjccontributionjctojcIRAjc-jcanswer---
jc6%jcpenaltyjctaxjcunlessjcexcessjccontributionjcandjcitsjcearningsjcarejcwithdrawnjcbyjctaxjcr
eturnjcfilingjcduejcdate
SinglejctaxpayerjcIRAjcphasejcoutjcrange;jcifjcthejcindividualjcisjcanjcactivejcparticipantjcinjcajc
company-maintainedjcretirementjcplanjc-jcanswer--$61,000-$71,000
AllowablejcIRAjcdeductionjclimitjcequationjc-jcanswer--
IRAjccontributionjclimitjcxjc((UpperjcLimit-AGI)/phaseoutjcrange)
