Hw.55. Pablo and his wife Bernita are both age 54. Their combined AGI is $79,000. Neither is a participant in an employer-sponsoredretirement plan. They have been contributing to a traditional IRA for many years and have built up an IRA balance of $100,000. Theyare considering rolling the traditional IRA into a Roth IRA.Required:a. Is the couple eligible to make the conversion?b. Assume that the couple does not make the conversion but, instead, establishes a separate Roth IRA in the current year andproperly contributes $2,800 per year for four years, at which point the balance in the Roth is $21,000 (contributions plus investmentearnings). At the end of four years, they withdraw $20,000 to pay for an addition to their house. What is the amount of withdrawalthat is taxable, if any?c. Assume same facts as in requirement b, except that they instead withdrew only $6,000. What is the amount of withdrawal that istaxable?d. What if the $20,000 withdrawal is used to pay qualified education expenses for their daughter who is attending college?a. Is the couple eligible to make the conversion?b. Taxable amount of withdrawalc. Taxable amount of withdrawald. Taxable amount of withdrawal

The traditional IRA allows you to contribute a portion of pre-tax dollars. That reduces your taxable…

Answered: Pablo and his wife Bernita are both age…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 90TPC

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Pablo and his wife Bernita are both age 53. Their combined AGI is $78,000. Neither is a participant in an employer-sponsored retirement plan. They have been contributing to a traditional IRA for many years and have built up an IRA balance of $100,000. They are considering rolling the traditional IRA into a Roth IRA. Required: a. Is the couple eligible to make the conversion? b. Assume that the couple does not make the conversion but, instead, establishes a separate Roth IRA in the current year and properly contributes $2,750 per year for four years, at which point the balance in the Roth is $21,000 (contributions plus investment earnings). At the end of four years, they withdraw $19,500 to pay for an addition to their house. What is the amount of withdrawal that is taxable, if any? c. Assume same facts as in requirement b, except that they instead withdrew only $6,000. What is the amount of withdrawal that is taxable? d. What if the $19,500 withdrawal is used to pay qualified education…
Pablo and his wife Bernita are both age 51. Their combined AGI is $76,000. Neither is a participant in an employer-sponsored retirement plan. They have been contributing to a traditional IRA for many years and have built up an IRA balance of $100,000. They are considering rolling the traditional IRA into a Roth IRA. Required: Is the couple eligible to make the conversion? Assume that the couple does not make the conversion but, instead, establishes a separate Roth IRA in the current year and properly contributes $2,650 per year for four years, at which point the balance in the Roth is $21,000 (contributions plus investment earnings). At the end of four years, they withdraw $18,500 to pay for an addition to their house. What is the amount of withdrawal that is taxable, if any? Assume same facts as in requirement b, except that they instead withdrew only $6,000. What is the amount of withdrawal that is taxable? What if the $18,500 withdrawal is used to pay qualified education…
Haley (age 48) and Myron (age 51) are married and filing a joint return. Myron has earned income of $42,000 and is not covered by an employer plan. Haley is a homemaker and does not work outside the home. What is the total amount they can deduct for contributions to traditional IRAs for both Haley and Myron? Select one: a. $6,500 b. $11,000 c. $13,000 d. $12,000
[The following information applies to the questions displayed below.] Jackson and Ashley Turner (both 45 years old) are married and want to contribute to a Roth IRA for Ashley. In 2023, their AGI is $223,000. Jackson and Ashley each earned half of the income. Note: Leave no answers blank. Enter zero if applicable. a. How much can Ashley contribute to her Roth IRA if they file a joint return?
Jackson and Ashley Turner (both 45 years old) are married and want to contribute to a Roth IRA for Ashley. In 2022, their AGI is $209,000. Jackson and Ashley each earned half of the income. Note: Leave no answers blank. Enter zero if applicable. c. Assume that Ashley earned all of the couple's income and that she contributed the maximum amount she is allowed to contribute to a Roth IRA. What amount can be contributed to Jackson's Roth IRA?
What is the maximum IRA contribution that Josh can make under each of the following assumptions? Required: Josh is age 20 and single. Josh's only income item is $13,200 interest from a trust fund. Josh is age 40 and single. Josh's only income item is a $31,900 share of ordinary income from a partnership. Josh is age 60 and single. Josh's only income item is $24,200 wages. Josh is age 46 and files a joint return with a spouse. Josh's sole proprietorship generates a $7,720 loss, and the spouse's salary is $43,000.
Mr. Gilbert is self-employed and makes annual contributions to a SEP plan. Ms. Gilbert's employer doesn't offer any type of qualified retirement plan. Each spouse contributes the maximum $6,000 to a traditional IRA. Required: a. Compute the AGI on their joint return if AGI before an IRA deduction is $144,000. b. Compute the AGI on their joint return if AGI before an IRA deduction is $210,100. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Compute the AGI on their joint return if AGI before an IRA deduction is $210,100. $198,100 AGI
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Mr. Gilbert is self-employed and makes annual contributions to a Keogh plan. Mrs. Gilbert's employer doesn't offer any type of qualified retirement plan. Each spouse contributes the maximum $6,000 to a traditional IRA. Required: a. Compute the AGI on their joint return if AGI before an IRA deduction is $129,000. b. Compute the AGI on their joint return if AGI before an IRA deduction is $204,100. Complete this question by entering your answers in the tabs below. Required A Required B Compute the AGI on their joint return if AGI before an IRA deduction is $129,000. AGI
Jackson and Ashley Turner (both 45 years old) are married and want to contribute to a Roth IRA for Ashley. In 2022, their AGI is $209,000. Jackson and Ashley each earned half of the income. Note: Leave no answers blank. Enter zero if applicable. a. How much can Ashley contribute to her Roth IRA if they file a joint return?
Kathleen and Glenn decide that this is the year to begin getting serious about saving for their retirement by participating in their employers’ § 401(k) plans. As a result, they each have $3,000 of their salary set aside in their qualified plans. a. Calculate the credit for certain retirement plan contributions available to Kathleen and Glenn if the AGI on their joint return is $35,000. b. Kathleen and Glenn persuade their dependent 15-year-old son, Joel, to put $500 of his part-time earnings into a Roth IRA during the year. What is the credit for certain retirement plan contributions available to Joel? His AGI is $7,000.

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