What is the maximum IRA contribution for each spouse if one earns $153,000 and the other earns $111,000?

The correct answer is based on the contribution limits set by the IRS for Individual Retirement Accounts (IRAs). For the tax year 2024, the maximum contribution limit to a traditional or Roth IRA for individuals under age 50 is $6,000. For individuals age 50 and over, there is a catch-up contribution provision that allows them to contribute an additional $1,000, making the total $7,000 per person.

Given that both spouses can potentially contribute to their IRAs, their maximum contribution is effectively the same. However, since the question mentions "maximum IRA contribution for each spouse," the answer reflects contributions assuming that both are under 50. Therefore, the total allowable amount is $6,000 each, since they are both eligible based on their earned income.

The choice of $5,500 does not match the current contribution limits and is therefore incorrect. The contributions must adhere to the allowable limits set by the IRS, which is $6,000 for each spouse under 50, making the total $12,000 for the couple. If both spouses were 50 or older, the answer would have been $7,000 each instead.