Deck 11: Divorce and Tax: No Shelter for the Weary

Question 1

A pension is a retirement plan for an employee's children only.

Answer 1

False

Question 2

A tax-sheltered retirement plan used in public schools and certain tax-exempt organizations is called a 403B.

Answer 2

True

Question 3

A payee receives support payments.

Answer 3

True

Question 4

According to section 71(b) of the Internal Revenue Code, _____ requirements must be met for an alimony payment to be considered eligible as a tax deduction.

A) six
B) nine
C) three
D) seven

Question 5

A dependent exemption reduces a taxpayer's liability.

Question 6

A tax imposed on the profit realized from the sale of an investment is called a/an

A) capital gains tax
B) investment tax credit
C) profit gained tax
D) None of these choices is correct.

Question 7

A qualified domestic relations order is not necessary if the final judgment of divorce states that a non-designated person is to receive a portion of the intended payee's retirement plan.

Question 8

The person making the support payments is called the payor.

Question 9

An investment tax credit is a tax credit for property bought for a business.

Question 10

Retirement plans are mandatory benefits that all employers must provide.

Question 11

The Internal Revenue Service follows the rules of the International Tax Code.

Question 12

A defined contribution plan offered by a corporation to allow its employees to set aside tax-deferred income is called an IRA.

Question 13

The person receiving benefits from a retirement plan is called the intended beneficiary.

Question 14

The spouse who makes the support payments is called the

A) payor spouse
B) payee spouse
C) receiver of record
D) dependent

Question 15

Capital gains tax is tax that is paid by the buyer of the subject property.

Question 16

Property that was used as a tax deduction on one spouse's prior years' tax returns and is now being transferred to the other spouse for use is entitled to a/an

A) investment tax credit
B) Keogh plan
C) intended beneficiary
D) Internal Revenue Code

Question 17

The Keogh plan is a retirement plan for self-employed persons.

Question 18

The six requirements that must be met for a payment to be considered eligible as a tax deduction can be found in section 71(b).

Question 19

The spouse who receives the support payments is called the

A) payee spouse
B) dependent
C) payor spouse
D) wife

Question 20

The rules of the Internal Revenue Service are found in

A) the Internal Revenue Code
B) section 71(b)
C) a qualified domestic relations order
D) None of these choices is correct.

Question 21

The person who receives benefits from a retirement plan is known as the

A) intended beneficiary
B) wife
C) payor
D) capital gains payor

Question 22

The spouse required to make support payments is called the _____ spouse.

Question 23

A/An _____ is a defined contribution plan that is tax deferred for retirement purposes and usually offered by corporations.

Question 24

Property that was used as a tax deduction on one spouse's prior year's tax return and is now being transferred to the other spouse for use is entitled to a/an _____.

Question 25

A/An _____ reduces a taxpayer's taxable income.

Question 26

A _____ is a type of retirement plan for self-employed persons or sole proprietors.

A) Keogh plan
B) game plan
C) map plan
D) child care plan

Question 27

The spouse who receives support payments is called the _____ spouse.

Question 28

A/An _____ is a type of retirement plan that an employee might receive from an employer.

A) pension
B) Internal Revenue Service plan
C) section 71(b) plan
D) None of these choices is correct.

Question 29

A _____ is designed to financially support a person after he or she is no longer working.

A) retirement plan
B) dependent exemption plan
C) payee spouse plan
D) None of these choices is correct.

Question 30

A _____ is an order requesting that a retirement plan's benefits be paid to someone other than the designated payee.

A) qualified domestic relations order
B) consent order
C) proposed order
D) judgment

Question 31

A tax that is imposed on the profit realized from the sale of a capital asset is known as a/an _____.

Question 32

A/An _____ requests that a retirement plan be paid to someone other than the intended payee.

Question 33

Six requirements must be met for a payment to be considered eligible as a tax deduction. These requirements can be found in _____.

Question 34

The _____ is the retirement plan most commonly offered by employers.

A) 401K
B) 399M
C) 299W
D) GH1

Question 35

A tax-free retirement account for a self-employed person is called a/an _____ plan.

Question 36

The Internal Revenue Service (IRS) follows a set of rules known as the _____.

Question 37

A/An _____ is a post-retirement benefit that an employee might receive from an employer; it is essentially compensation for retirement.

Question 38

A _____ is a type of retirement plan often used in public schools and certain tax-exempt organizations.

A) 403B
B) 557Q
C) 203J
D) 779Y

Question 39

A _____ is an amount excluded from a person's taxable income for a qualified person.

A) dependent exemption
B) retirement plan
C) capital gains tax
D) section 71(b) tax

Question 40

Public schools and certain tax-exempt organizations offer the _____ retirement plan.

Question 41

The person who receives benefits from a retirement plan is called the _____.

Question 42

A plan for a person to be compensated upon retiring is known as a/an _____ plan.