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| a. |
All of the contribution is deductible. |
|
| b. |
None of the contribution is deductible. |
|
| c. |
She must withdraw all of the contribution immediately since she is covered under a plan at work. |
|
| d. |
Only 60% of the contribution is deductible since her AGI exceeds $66,000 by $4,000 and her maximum contribution is phased out by 40%. |
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- Marta is 52 years of age and expects to retire from her current employer at age 65. Marta’s employer contributes $2,000 to a qualified retirement plan for Marta’s benefit in the current year. How will Marta’s employer treat the contribution? a. The $2,000 is never deductible b. The $2,000 is deductible in the current year by the employer c. The $2,000 is deductible in the year Marta retires by the employer d. Only one-twentieth ($100) is deductible in the current year by the employere. None of the abovAndrea entered into a § 529 qualified tuition program for the benefit of her daughter, Joanna. Andrea contributed $15,000 to the fund. The fund balance had accumulated to $25,000 by the time Joanna was ready to enter college. However, Joanna received a scholarship that paid for her tuition, fees, books, supplies, and room and board. So Andrea withdrew the funds from the § 529 plan and bought Joanna a new car. If an amount is zero, enter "0". a. What are the tax consequences to Andrea of withdrawing the funds? Andrea includes $ in her gross income and Joanna includes $ Is Andrea or Joanna subject to a penalty? b. Assume instead that Joanna's scholarship did not cover her room and board, which cost $7,500 per academic year. During the current year, $7,500 of the fund balance was used to pay for Joanna's room and board. The remaining amount was left in the 5 529 plan to cover her room and board for future academic years. What are the tax consequences to Andrea and to Joanna of using the…Julia has a residual disability and has a pro-rata policy. If she has lost 50% of his usual monthly salary of $5,500, how much will her monthly disability payment be? Zero $5,500 $2,750 $3,550 $1,100
- (LO 5.4) Anthony, a self-employed plumber, makes a maximum contribution to a SEP for his employee, Debra. Debra's compensation is $40,000 for the year. How much is he allowed to contribute to the plan for Debra?$Mabel is 45 and earned $30,000 in 2018. If she contributed $6,000 to her traditional IRA, what would be her excise penalty? . Hannah, age 56, earned $58,000 in 2018. She is also a participant in a qualified plan to which she contributed $18,500. How much can she contribute to a traditional IRA in 2018? $6,500 b. $5,500 c. $0 she is ineligible d. $7,000 In question 3 above, would her contribution to a traditional IRA be tax-deductible? Yes b. No If you own a Roth IRA, are you subject to Required Minimum Distributions? Yes b. No Bernice is age 54 and her granddaughter, age 18, will be attending UMSL in the Fall 2018. Bernice would like to withdraw $15,000 from her traditional IRA to pay for some of her granddaughter’s college expenses. She asks if this withdrawal can be made without a 10% penalty. You tell her: No way b. no 10% penalty c. tax on withdrawal and 10% penalty d. none of these answers. Gus is 72 and works part-time earning $16,000 per year. He asks you whether he…Sam (Jessica's husband) home has a replacement value with a deductible. A couple of years ago he insured his home and the coverage never increased, even though the policy required coverage of 80% of the replacement cost. Last month, he had a kitchen fire, which caused damages. Step 1: Calculate the Total Amount Reimbursed Step 2: What is the % she will pay? (1 minus the % amount covered) Amount of Loss - $75,000 Deductible - $500 Amount of Insurance Actually Carried - $150,000 % Percentage Amount Needed - 80% Replacement Value - $200,000
- Mary owns a home with a with a replacement value of $331,195. She purchased home insurance in the amount of $200,000, and therefore does not meet the 80% rule. If Mary's deductible is $3,000 and a BBQ fire caused $75,000 worth of damage, how much will Mary have to pay herself?Last year, Dani maximized her TFSA contribution limit by contributing $30,000 to her TFSA. This year, her contribution limit is $7,000. The $30,000 that Dani contributed last year has grown to $32,000. She contributed nothing this year but withdrew the entire amount of $32,000. Assuming next year's limit is also $7,000 how much can Dani contribute to her TFSA next year?Meredith is an Army veteran who was medically discharged after she sustained a serious injury in a combat zone. Since her discharge, she has received $1,800 per month in Veterans' disability benefits. She also works as a fulfillment supervisor in an Amazon warehouse earning $2,500 per month in wages. What part of her income is taxable? Group of answer choices The Veterans' disability benefits Her Amazon wages only Both the Veterans' disability benefits and the Amazon wages Neither are taxable because she is a veteran
- 29. Andrew was hit by a jeepney. He paid P100,000 for hospitalization expenses. He sued the jeepney driver and was awarded by the court a total indemnity of P340,000 divided as follows;P200,000 indemnity for his pain, anguish and suffering, P40,000 for his lost salaries, andP100,000 as reimbursement for his hospital bills. Which of the following will be subject to regular income tax * a. P 340,000 b. P 40,000 O c. P 100,000 O d. P 140,00011. Gordon participates in his employer's HSA/HDHP. On a monthly basis, Gordon contributes $100 to his account; his employer made a lump-sum contribution of $500 to each participating employee's account at the beginning of the year. If Gordon leaves the employer mid-year, what happens to the $500 employer contribution? Oa. Gordon must pay back the full $500 to his employer. Ob. Gordon must pay back a pro-rated share of the $500 to his employer. OC. Gordon keeps the full $500. Od. The employer may, at its option, deduct up to $500 from Gordon's final paycheck.4. Mr. Ankit retired on April 30, 2020. He will be receiving gratuity of *5.5 lakh and leave encashment of *2.20 lakh. He will also be receiving employee and employer contribution to provident fund. If he opt for the reduced rate of tax. Explain whether he will be eligible for the exemption under Income Tax Act,
