roth_ira 1.2.0

checksums.yaml

@@ -0,0 +1,7 @@
+---
+SHA1:
+  metadata.gz: 5a7bbd77d6a3283c63e435ca850c4d6935621f37
+  data.tar.gz: 01be66098e85fb161399ca7b43b56f68ee61b04d
+SHA512:
+  metadata.gz: 5637387863f8e81764a364750842fa8685ad9c014252c64ce2c4e2620b9239ca620ec832fe32e8271c8158864238afea10881908a045a6b9a4d516fcdf194d2b
+  data.tar.gz: c6450b1b50a392c65bca6039076b4ea759946acc7953d133ded5236dcde46601e9631f18066830b1771911549a2353a8bf05a99a6251c8f712af5c60948c2381

data/lib/limits.yaml

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+---
+2015:
+  :single:
+    :lower_income_limit: 116000
+    :upper_income_limit: 131000
+    :contribution_limit: 5500
+    :minimum_phase_out: 200
+  :head_of_household:
+    :lower_income_limit: 116000
+    :upper_income_limit: 131000
+    :contribution_limit: 5500
+    :minimum_phase_out: 200
+  :married_filing_jointly:
+    :lower_income_limit: 183000
+    :upper_income_limit: 193000
+    :contribution_limit: 11000
+    :minimum_phase_out: 400
+  :catch_up_contribution: 1000
+  :catch_up_age: 50
+2016:
+  :single:
+    :lower_income_limit: 117000
+    :upper_income_limit: 132000
+    :contribution_limit: 5500
+    :minimum_phase_out: 200
+  :head_of_household:
+    :lower_income_limit: 117000
+    :upper_income_limit: 132000
+    :contribution_limit: 5500
+    :minimum_phase_out: 200
+  :married_filing_jointly:
+    :lower_income_limit: 184000
+    :upper_income_limit: 194000
+    :contribution_limit: 11000
+    :minimum_phase_out: 400
+  :catch_up_contribution: 1000
+  :catch_up_age: 50
+2017:
+  :single:
+    :lower_income_limit: 118000
+    :upper_income_limit: 133000
+    :contribution_limit: 5500
+    :minimum_phase_out: 200
+  :head_of_household:
+    :lower_income_limit: 118000
+    :upper_income_limit: 133000
+    :contribution_limit: 5500
+    :minimum_phase_out: 200
+  :married_filing_jointly:
+    :lower_income_limit: 186000
+    :upper_income_limit: 196000
+    :contribution_limit: 11000
+    :minimum_phase_out: 400
+  :catch_up_contribution: 1000
+  :catch_up_age: 50

data/lib/roth_ira.rb

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+require 'yaml'
+
+class RothIRA
+  attr_reader :age, :agi, :filing_status, :limits, :spouse_age, :year
+
+  def initialize(year)
+    @year = year
+    @limits = YAML.load(File.read(__dir__ + "/limits.yaml"))[year]
+  end
+
+  def calculate(agi, filing_status, *ages)
+    @agi = agi
+    @filing_status = filing_status
+    @age = ages.first
+    @spouse_age = ages.size == 2 ? ages.last : 0
+
+    calculate_limit
+  end
+
+  private
+
+  def calculate_limit
+    case agi
+      when 0..max_contribution then agi
+      when max_contribution..lower_limit then max_contribution
+      when lower_limit...upper_limit then calculate_phase_out
+      else 0
+    end
+  end
+
+  def lower_limit
+    limits[filing_status][:lower_income_limit]
+  end
+
+  def upper_limit
+    limits[filing_status][:upper_income_limit]
+  end
+
+  def max_contribution
+    contribution_limit + calculate_catch_up
+  end
+
+  def catch_up_age
+    limits[:catch_up_age]
+  end
+
+  def catch_up_contribution
+    limits[:catch_up_contribution]
+  end
+
+  def contribution_limit
+    limits[filing_status][:contribution_limit]
+  end
+
+  def minimum_phase_out
+    limits[filing_status][:minimum_phase_out]
+  end
+
+  def calculate_catch_up
+    eligible_for_catch_up = [primary_eligible_for_catch_up, spouse_eligible_for_catch_up]
+    eligible_for_catch_up.count(true) * catch_up_contribution
+  end
+
+  def primary_eligible_for_catch_up
+    age >= catch_up_age
+  end
+
+  def spouse_eligible_for_catch_up
+    filing_status == :married_filing_jointly && spouse_age >= catch_up_age
+  end
+
+  def calculate_phase_out
+    excess_income = (agi - lower_limit).to_f
+    ratio = 1 - (excess_income/limit_range).round(3)
+    phase_out_amount = nearest_10(max_contribution * ratio)
+    minimum_200 phase_out_amount
+  end
+
+  def limit_range
+    upper_limit - lower_limit
+  end
+
+  def nearest_10(amount)
+    # IRS instructions are to round contribution limit UP to the nearest $10
+    (amount.to_f / 10).ceil * 10
+  end
+
+  def minimum_200(amount)
+    # IRS instructions allow minimum contribution of $200 in phase-out range (per person)
+    amount < minimum_phase_out ? minimum_phase_out : amount
+  end
+end

data/lib/roth_ira/version.rb

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+class RothIRA
+  VERSION = '1.2.0'
+end

data/spec/roth_ira_spec.rb

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+require 'spec_helper'
+
+describe RothIRA do
+  it 'should return correct version string' do
+    expect(RothIRA::VERSION).to eq('1.2.0')
+  end
+
+  context 'Tax year 2015' do
+    let(:roth_ira) { RothIRA.new(2015) }
+    context 'Single' do
+      it 'should return correct value for low income single' do
+        expect(roth_ira.calculate(1500, :single, 25)).to eq(1500)
+      end
+
+      it 'should return correct value for moderate income single' do
+        expect(roth_ira.calculate(75000, :single, 25)).to eq(5500)
+      end
+
+      it 'should return correct value for high income single' do
+        expect(roth_ira.calculate(135000, :single, 25)).to eq(0)
+      end
+
+      it 'should return correct value for phase-out income single' do
+        expect(roth_ira.calculate(122800, :single, 25)).to eq(3010)
+      end
+
+      it 'should correctly handle minimum phase out amount of $200' do
+        expect(roth_ira.calculate(130900, :single, 25)).to eq(200)
+      end
+
+      context 'over 50' do
+        it 'should return correct value for low income single over 50' do
+          expect(roth_ira.calculate(1500, :single, 50)).to eq(1500)
+        end
+
+        it 'should return correct value for moderate income single over 50' do
+          expect(roth_ira.calculate(75000, :single, 50)).to eq(6500)
+        end
+
+        it 'should return correct value for phase-out income single over 50' do
+          expect(roth_ira.calculate(121600, :single, 50)).to eq(4080)
+        end
+      end
+    end
+
+    context 'Head of Household' do
+      it 'should return correct value for low income head of household' do
+        expect(roth_ira.calculate(1500, :head_of_household, 25)).to eq(1500)
+      end
+
+      it 'should return correct value for moderate income head of household' do
+        expect(roth_ira.calculate(75000, :head_of_household, 25)).to eq(5500)
+      end
+
+      it 'should return correct value for high income head of household' do
+        expect(roth_ira.calculate(135000, :head_of_household, 25)).to eq(0)
+      end
+
+      it 'should return correct value for phase-out income head of household' do
+        expect(roth_ira.calculate(122800, :head_of_household, 25)).to eq(3010)
+      end
+
+      it 'should correctly handle minimum phase out amount of $200' do
+        expect(roth_ira.calculate(130900, :head_of_household, 25)).to eq(200)
+      end
+
+      context 'over 50' do
+        it 'should return correct value for low income head of household over 50' do
+          expect(roth_ira.calculate(1500, :head_of_household, 50)).to eq(1500)
+        end
+
+        it 'should return correct value for moderate income head of household over 50' do
+          expect(roth_ira.calculate(75000, :head_of_household, 50)).to eq(6500)
+        end
+
+        it 'should return correct value for phase-out income head of household over 50' do
+          expect(roth_ira.calculate(121600, :head_of_household, 50)).to eq(4080)
+        end
+      end
+    end
+
+    context 'Married Filing Jointly' do
+      it 'should return correct value for low income married filing jointly' do
+        expect(roth_ira.calculate(9900, :married_filing_jointly, 25, 26)).to eq(9900)
+      end
+
+      it 'should return correct value for moderate income married filing jointly' do
+        expect(roth_ira.calculate(135000, :married_filing_jointly, 25, 26)).to eq(11000)
+      end
+
+      it 'should return correct value for high income married filing jointly' do
+        expect(roth_ira.calculate(195000, :married_filing_jointly, 25, 26)).to eq(0)
+      end
+
+      it 'should return correct value for phase-out income married filing jointly' do
+        expect(roth_ira.calculate(189500, :married_filing_jointly, 25, 26)).to eq(3850)
+      end
+
+      context 'over 50' do
+        it 'should return correct value for low income married filing jointly, with one over 50' do
+          expect(roth_ira.calculate(9900, :married_filing_jointly, 50, 49)).to eq(9900)
+        end
+
+        it 'should return correct value for moderate income married filing jointly, with one over 50' do
+          expect(roth_ira.calculate(135000, :married_filing_jointly, 50, 49)).to eq(12000)
+        end
+
+        it 'should return correct value for moderate income married filing jointly, with both over 50' do
+          expect(roth_ira.calculate(135000, :married_filing_jointly, 50, 51)).to eq(13000)
+        end
+
+        it 'should return correct value for phase-out income married filing jointly, with one over 50' do
+          expect(roth_ira.calculate(189500, :married_filing_jointly, 50, 49)).to eq(4200)
+        end
+
+        it 'should return correct value for phase-out income married filing jointly, with both over 50' do
+          expect(roth_ira.calculate(189500, :married_filing_jointly, 50, 65)).to eq(4550)
+        end
+
+        it 'should return correct value for high income married filing jointly, with both over 50' do
+          expect(roth_ira.calculate(195000, :married_filing_jointly, 55, 62)).to eq(0)
+        end
+      end
+    end
+  end
+
+  context 'Tax year 2016' do
+    let(:roth_ira) { RothIRA.new(2016) }
+    context 'Single' do
+      it 'should return correct value for low income single' do
+        expect(roth_ira.calculate(1500, :single, 25)).to eq(1500)
+      end
+
+      it 'should return correct value for moderate income single' do
+        expect(roth_ira.calculate(75000, :single, 25)).to eq(5500)
+      end
+
+      it 'should return correct value for high income single' do
+        expect(roth_ira.calculate(135000, :single, 25)).to eq(0)
+      end
+
+      it 'should return correct value for phase-out income single' do
+        expect(roth_ira.calculate(122800, :single, 25)).to eq(3380)
+      end
+
+      it 'should correctly handle minimum phase out amount of $200' do
+        expect(roth_ira.calculate(131900, :single, 25)).to eq(200)
+      end
+
+      context 'over 50' do
+        it 'should return correct value for low income single over 50' do
+          expect(roth_ira.calculate(1500, :single, 50)).to eq(1500)
+        end
+
+        it 'should return correct value for moderate income single over 50' do
+          expect(roth_ira.calculate(75000, :single, 50)).to eq(6500)
+        end
+
+        it 'should return correct value for phase-out income single over 50' do
+          expect(roth_ira.calculate(121600, :single, 50)).to eq(4510)
+        end
+      end
+    end
+
+    context 'Head of Household' do
+      it 'should return correct value for low income head of household' do
+        expect(roth_ira.calculate(1500, :head_of_household, 25)).to eq(1500)
+      end
+
+      it 'should return correct value for moderate income head of household' do
+        expect(roth_ira.calculate(75000, :head_of_household, 25)).to eq(5500)
+      end
+
+      it 'should return correct value for high income head of household' do
+        expect(roth_ira.calculate(135000, :head_of_household, 25)).to eq(0)
+      end
+
+      it 'should return correct value for phase-out income head of household' do
+        expect(roth_ira.calculate(122800, :head_of_household, 25)).to eq(3380)
+      end
+
+      it 'should correctly handle minimum phase out amount of $200' do
+        expect(roth_ira.calculate(131900, :head_of_household, 25)).to eq(200)
+      end
+
+      context 'over 50' do
+        it 'should return correct value for low income head of household over 50' do
+          expect(roth_ira.calculate(1500, :head_of_household, 50)).to eq(1500)
+        end
+
+        it 'should return correct value for moderate income head of household over 50' do
+          expect(roth_ira.calculate(75000, :head_of_household, 50)).to eq(6500)
+        end
+
+        it 'should return correct value for phase-out income head of household over 50' do
+          expect(roth_ira.calculate(121600, :head_of_household, 50)).to eq(4510)
+        end
+      end
+    end
+
+    context 'Married Filing Jointly' do
+      it 'should return correct value for low income married filing jointly' do
+        expect(roth_ira.calculate(9900, :married_filing_jointly, 25, 26)).to eq(9900)
+      end
+
+      it 'should return correct value for moderate income married filing jointly' do
+        expect(roth_ira.calculate(135000, :married_filing_jointly, 25, 26)).to eq(11000)
+      end
+
+      it 'should return correct value for high income married filing jointly' do
+        expect(roth_ira.calculate(195000, :married_filing_jointly, 25, 26)).to eq(0)
+      end
+
+      it 'should return correct value for phase-out income married filing jointly' do
+        expect(roth_ira.calculate(189500, :married_filing_jointly, 25, 26)).to eq(4950)
+      end
+
+      context 'over 50' do
+        it 'should return correct value for low income married filing jointly, with one over 50' do
+          expect(roth_ira.calculate(9900, :married_filing_jointly, 50, 49)).to eq(9900)
+        end
+
+        it 'should return correct value for moderate income married filing jointly, with one over 50' do
+          expect(roth_ira.calculate(135000, :married_filing_jointly, 50, 49)).to eq(12000)
+        end
+
+        it 'should return correct value for moderate income married filing jointly, with both over 50' do
+          expect(roth_ira.calculate(135000, :married_filing_jointly, 50, 51)).to eq(13000)
+        end
+
+        it 'should return correct value for phase-out income married filing jointly, with one over 50' do
+          expect(roth_ira.calculate(189500, :married_filing_jointly, 50, 49)).to eq(5400)
+        end
+
+        it 'should return correct value for phase-out income married filing jointly, with both over 50' do
+          expect(roth_ira.calculate(189500, :married_filing_jointly, 50, 65)).to eq(5850)
+        end
+
+        it 'should return correct value for high income married filing jointly, with both over 50' do
+          expect(roth_ira.calculate(195000, :married_filing_jointly, 55, 62)).to eq(0)
+        end
+
+        it 'should correctly handle minimum phase out amount of $200' do
+          expect(roth_ira.calculate(193900, :married_filing_jointly, 55, 62)).to eq(400)
+        end
+      end
+    end
+  end
+
+  context 'Tax year 2017' do
+    let(:roth_ira) { RothIRA.new(2017) }
+    context 'Single' do
+      it 'returns maximum contribution for bottom of income limit' do
+        expect(roth_ira.calculate(118000, :single, 40)).to eq(5500)
+      end
+
+      it 'returns maximum contribution for bottom of income limit with catch-up' do
+        expect(roth_ira.calculate(118000, :single, 50)).to eq(6500)
+      end
+
+      it 'returns zero contribution for top of income limit' do
+        expect(roth_ira.calculate(133000, :single, 40)).to eq(0)
+      end
+
+      it 'returns maximum contribution for bottom of income limit with catch-up' do
+        expect(roth_ira.calculate(133000, :single, 50)).to eq(0)
+      end
+    end
+
+    context 'Head of Household' do
+      it 'returns maximum contribution for bottom of income limit' do
+        expect(roth_ira.calculate(118000, :head_of_household, 40)).to eq(5500)
+      end
+
+      it 'returns maximum contribution for bottom of income limit with catch-up' do
+        expect(roth_ira.calculate(118000, :head_of_household, 50)).to eq(6500)
+      end
+
+      it 'returns zero contribution for top of income limit' do
+        expect(roth_ira.calculate(133000, :head_of_household, 40)).to eq(0)
+      end
+
+      it 'returns maximum contribution for bottom of income limit with catch-up' do
+        expect(roth_ira.calculate(133000, :head_of_household, 50)).to eq(0)
+      end
+    end
+
+    context 'Married Filing Jointly' do
+      it 'returns maximum contribution for bottom of income limit' do
+        expect(roth_ira.calculate(186000, :married_filing_jointly, 40, 40)).to eq(11000)
+      end
+
+      it 'returns maximum contribution for bottom of income limit with one catch-up' do
+        expect(roth_ira.calculate(186000, :married_filing_jointly, 40, 50)).to eq(12000)
+      end
+
+      it 'returns maximum contribution for bottom of income limit with both catch-up' do
+        expect(roth_ira.calculate(186000, :married_filing_jointly, 50, 50)).to eq(13000)
+      end
+
+      it 'returns zero contribution for top of income limit' do
+        expect(roth_ira.calculate(196000, :married_filing_jointly, 40, 40)).to eq(0)
+      end
+
+      it 'returns maximum contribution for bottom of income limit with one catch-up' do
+        expect(roth_ira.calculate(196000, :married_filing_jointly, 40, 50)).to eq(0)
+      end
+
+      it 'returns maximum contribution for bottom of income limit with both catch-up' do
+        expect(roth_ira.calculate(196000, :married_filing_jointly, 50, 50)).to eq(0)
+      end
+    end
+  end
+end

data/spec/spec_helper.rb

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+require 'bundler/setup'
+Bundler.setup
+
+require 'byebug'
+require 'roth_ira'
+
+RSpec.configure do |config|
+  config.filter_run :focus
+  config.run_all_when_everything_filtered = true
+end

metadata

@@ -0,0 +1,66 @@
+--- !ruby/object:Gem::Specification
+name: roth_ira
+version: !ruby/object:Gem::Version
+  version: 1.2.0
+platform: ruby
+authors:
+- Randall Reed
+autorequire: 
+bindir: bin
+cert_chain: []
+date: 2017-08-13 00:00:00.000000000 Z
+dependencies:
+- !ruby/object:Gem::Dependency
+  name: rspec
+  requirement: !ruby/object:Gem::Requirement
+    requirements:
+    - - "~>"
+      - !ruby/object:Gem::Version
+        version: '3.3'
+  type: :development
+  prerelease: false
+  version_requirements: !ruby/object:Gem::Requirement
+    requirements:
+    - - "~>"
+      - !ruby/object:Gem::Version
+        version: '3.3'
+description: Determines max Roth IRA contribution amount based on year, filing status,
+  and MAGI
+email:
+- randallreedjr@gmail.com
+executables: []
+extensions: []
+extra_rdoc_files: []
+files:
+- lib/limits.yaml
+- lib/roth_ira.rb
+- lib/roth_ira/version.rb
+- spec/roth_ira_spec.rb
+- spec/spec_helper.rb
+homepage: http://github.com/randallreedjr/roth_ira
+licenses:
+- MIT
+metadata: {}
+post_install_message: 
+rdoc_options: []
+require_paths:
+- lib
+required_ruby_version: !ruby/object:Gem::Requirement
+  requirements:
+  - - ">="
+    - !ruby/object:Gem::Version
+      version: '0'
+required_rubygems_version: !ruby/object:Gem::Requirement
+  requirements:
+  - - ">="
+    - !ruby/object:Gem::Version
+      version: '0'
+requirements: []
+rubyforge_project: 
+rubygems_version: 2.4.8
+signing_key: 
+specification_version: 4
+summary: Roth IRA Contribution Limit Calculator
+test_files:
+- spec/roth_ira_spec.rb
+- spec/spec_helper.rb