Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
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Chapter 9, Problem 14P
a
To determine
Introduction:Transfer of assets from one retirement plan to another retirement plan by a taxpayer is known as rollovers. This transfer can be accomplished in two ways, rollover of the distribution, in whole or in part to an IRA or any other qualified plan, and direct transfer, also known as a trustee-to-trustee transfer.
The amount T receives from blue fund IRA.
b
To determine
Introduction:Transfer of assets from one retirement plan to another retirement plan by a taxpayer is known as rollovers. This transfer can be accomplished in two ways, rollover of the distribution, in whole or in part to an IRA or any other qualified plan, and direct transfer, also known as a trustee-to-trustee transfer.
The amount T must contribute to the green fund to avoid having taxable income and penalties for early withdrawal.
c
To determine
IntroductionTransfer of assets from one retirement plan to another retirement plan by a taxpayer is known as rollovers. This transfer can be accomplished in two ways, rollover of the distribution, in whole or in part to an IRA or any other qualified plan, and direct transfer, also known as a trustee-to-trustee transfer.
The last date T can roll over the amount received into green fund IRA to avoid
d
To determine
Introduction:Transfer of assets from one retirement plan to another retirement plan by a taxpayer is known as rollovers. This transfer can be accomplished in two ways, rollover of the distribution, in whole or in part to an IRA or any other qualified plan, and direct transfer, also known as a trustee-to-trustee transfer.
The amount T would receive in the distribution fromthe employer’s qualified retirement plan.
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Students have asked these similar questions
Carol, age 40, has an IRA with Blue Mutual Fund. Her balance in the fund is $150,000. She has heard good things about
the management of Red Mutual Fund, so she opens a Red Fund IRA. Carol requests her balance from the Blue Fund be
distributed to her on July 1, 20XX. She opted to have no withholding on the distribution.
a. How much will Carol receive from the Blue Fund IRA?
150,000 v
b. If the funds were distributed from a qualified retirement plan (not an IRA), how much would Carol receive?
150,000 x
c. When is the last day Carol can roll over the amount received into the Red Fund IRA and avoid taxation in the current
year? Assume the hardship waiver provisions does not apply.
August 30
d. Assuming the funds were distributed from a qualified retirement plan, not from an IRA, how much will Carol have to
contribute to the Red Fund IRA to avoid taxable income and any penalties?
Ralph has a $130,000 IRA with Red Investments. For personal reasons, he decides to move his funds to Blue Investments. He requests that his funds be distributed to him on August 20, 2018.
What amount will Ralph receive from Red Investment?
What is the last day Ralph can deposit the funds from Red Investments and avoid taxation in the current year?
If the funds were distributed from a qualified retirement plan (not an IRA), how much would Ralph receive?
Assuming the funds were distributed from a qualified retirement plan, not an IRA, how much will Ralph have to contribute to Blue Investments to avoid taxable income and any penalties?
Telly, age 38, has a $193,000 IRA with Blue Mutual Fund. He has read good things about the management of Green Mutual Fund, so he opens a Green Fund IRA. Telly asked for a distribution rollover and received his balance from the Blue Fund on May 1, 2020. Telly opted to have no withholding on the distribution.
a. What amount will Telly receive from the Blue Fund IRA?
b. What amount must Telly contribute to the Green Fund IRA to avoid having taxable income and penalties for early withdrawal?
Chapter 9 Solutions
Income Tax Fundamentals 2020
Ch. 9 - Prob. 1MCQCh. 9 - Abbe, age 56, is married and has two dependent...Ch. 9 - Prob. 3MCQCh. 9 - Prob. 4MCQCh. 9 - Prob. 5MCQCh. 9 - Estimated payments for individual taxpayers are...Ch. 9 - Prob. 7MCQCh. 9 - Prob. 8MCQCh. 9 - Prob. 9MCQCh. 9 - Prob. 10MCQ
Ch. 9 - Ran's wage income is $47,350 in 2019. The combined...Ch. 9 - Prob. 12MCQCh. 9 - Prob. 13MCQCh. 9 - Prob. 14MCQCh. 9 - Prob. 15MCQCh. 9 - Prob. 16MCQCh. 9 - Prob. 17MCQCh. 9 - Prob. 18MCQCh. 9 - Prob. 19MCQCh. 9 - Prob. 20MCQCh. 9 - Prob. 21MCQCh. 9 - Bonnie is getting close to retirement and realizes...Ch. 9 - Prob. 1PCh. 9 - Prob. 2PCh. 9 - Prob. 3PCh. 9 - Prob. 4PCh. 9 - Kana is a single wage earner with no dependents...Ch. 9 - Lamden Company paid its employee, Trudy, wages of...Ch. 9 - Fiduciary Investments paid its employee, Yolanda,...Ch. 9 - Thuy worked as the assistant manager at Burger...Ch. 9 - Prob. 11PCh. 9 - Prob. 13PCh. 9 - Prob. 14PCh. 9 - Allen (age 32) takes a distribution of $20,000...
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