Martin retired in May, 2014. His pension is $1,000 per month from a qualified retirement plan to which he contributed $42,000, and to which his employer contributed $12,000. Martin was 67 when the plan payments started. During 2014, he received 8 months of payment for a total of $8,000 from the plan.
a.Using the simplified method, calculate Martin's taxable income for 2014 from the retirement plan distributions.
b.If Martin's contributions to the plan had been $25,200, instead of $42,000, how much taxable income would he have to report in 2014 from the plan distributions?

Question

Martin retired in May, 2014. His pension is $1,000 per month from a qualified retirement plan to which he contributed $42,000, and to which his employer contributed $12,000. Martin was 67 when the plan payments started. During 2014, he received 8 months of payment for a total of $8,000 from the plan.
a.Using the simplified method, calculate Martin's taxable income for 2014 from the retirement plan distributions.
b.​If Martin's contributions to the plan had been $25,200, instead of $42,000, how much taxable income would he have to report in 2014 from the plan distributions?

Quizplus · Accepted Answer

The Answer of Martin retired in May, 2014. His pension is $1,000 per month from a qualified retirement plan to which he contributed $42,000, and to which his employer contributed $12,000. Martin was 67 when the plan payments started. During 2014, he received 8 months of payment for a total of $8,000 from the plan.
a.Using the simplified method, calculate Martin's taxable income for 2014 from the retirement plan distributions.
b.​If Martin's contributions to the plan had been $25,200, instead of $42,000, how much taxable income would he have to report in 2014 from the plan distributions?

Martin Retired in May, 2014