Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
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Question
Chapter 9, Problem 18MCQ
To determine
Introduction: A retirement plan if created by an employer for the exclusive benefit of employees or their beneficiaries, is only qualified for income tax purposes, in addition to that contributions and benefits under a plan must not discriminate in favor of a highly compensated employee. This plan must also meet certain participation and coverage requirements, minimum vesting requirements and uniform minimum distribution rule.
To choose: The correct answer to determine the type of retirement plan G’s employer contributes to.
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Under certain conditions, an employee may put aside monies for a retirement account they have setup (known as an IRA or Individual
Retirement Account). To be eligible for this tax-free contribution, two conditions must be met. Complete the statements below outlining
these conditions.
1. The individual does not
belong to a company-funded retirement plan.
less
2. The individual has modified AGI of less
than $
than
In the case of a married employee, combined AGI must be
At his death, Andrew was a participant in his employer's contributory qualified pension plan. His account reflects the following.
Employer's contribution
$2,894,000
Andrew's contribution
2,315,200
(made with after-tax dollars)
Income earned and accumulated 1,447,000
by the plan
a. As to this plan, how much is included in Andrew's gross estate?
4,846,560 x
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Retirement plan benefits are subject to estate tax. Inclusion in the gross estate occurs irrespective of income tax consequences.
b. If the account balance is paid to Andrew's surviving spouse as the designated beneficiary, how much qualifies for the marital deduction?
4,846,560
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Incorrect
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Retirement plan benefits are subject to estate tax. Inclusion in the gross estate occurs irrespective of income tax consequences.
Which of the following statements concerning Social Security retirement benefits is (are) correct?
If an individual receives retirement benefits based on his spouse’s earnings record, his benefits will cease upon his divorce from her, unless he is 62 years of age or older and he was married to that spouse for at least 10 years.
Widows and widowers will continue to receive survivors benefits upon remarriage of the widow or widower if 60 years of age or older.
a. 1 only.
b. 2 only.
c. Both 1 and 2.
d. Neither 1 nor 2.
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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