Question 1

Tatia, age 38, has made deductible contributions to her traditional IRA over the past few years. When her account balance was $30,000, she received a distribution of the entire $30,000 balance of her traditional IRA. She retained $5,000 of the distribution to help her pay the taxes due from the distribution and she immediately contributed the remaining $25,000 to a Roth IRA. What amount of tax and early distribution penalty is she required to pay on the $30,000 distribution from the traditional IRA if her marginal tax rate is 25 percent?

Accepted Answer

The answer of Tatia, age 38, has made deductible contributions...

Question 2

Aiko (single, age 29)earned $40,600 in 2020. He was able to contribute $2,160 ($180/month)to his employer-sponsored 401(k). What is the total saver's credit that Aiko can claim for 2020? Exhibit 13-8

Accepted Answer

The answer of Aiko (single, age 29)earned $40,600 in 2020....

Question 3

Aiko (single, age 29)earned $40,000 in 2020. He was able to contribute $1,800 ($150/month)to his employer-sponsored 401(k). What is the total saver's credit that Aiko can claim for 2020? Exhibit 13-8

Accepted Answer

The answer of Aiko (single, age 29)earned $40,000 in 2020....

Question 4

Ryan, age 48, received an $8,000 distribution from his traditional IRA to pay for medical expenses (above the 7.5% of AGI floor). Ryan has made only deductible contributions to the IRA and his marginal tax rate is 28 percent. What amount of taxes and early distribution penalties will Ryan be required to pay on the distribution, assuming the distribution is not a coronavirus-related distribution?

Accepted Answer

The answer of Ryan, age 48, received an $8,000 distribution...

Question 5

Yvette is a 44-year-old self-employed contractor (no employees). During 2020, her Schedule C net income was $500,000. Assume Yvette has no contributions to other retirement plans. What is the maximum amount that Yvette can contribute to (1)a SEP IRA and (2)an individual 401(k)? (Round your answers to the nearest whole number.)

Accepted Answer

The answer of Yvette is a 44-year-old self-employed contractor (no...

Question 6

Deborah (single, age 29)earned $26,100 in 2020. Deborah was able to contribute $1,764 ($147/month)to her employer-sponsored 401(k). What is the total saver's credit that Deborah can claim for 2020? (Use Exhibit 13-8)

Accepted Answer

The answer of Deborah (single, age 29)earned $26,100 in 2020....

Question 7

Tatia, age 38, has made deductible contributions to her traditional IRA over the past few years. When her account balance was $44,000, shedirectly transferred the entire $44,000 out of her traditional IRA and immediately into a Roth IRA. Her current marginal tax rate is 25 percent. What amount of tax and penalty is she required to pay on this conversion?

Accepted Answer

The answer of Tatia, age 38, has made deductible contributions...

Question 8

Deborah (single, age 29)earned $25,000 in 2020. Deborah was able to contribute $1,800 ($150/month)to her employer-sponsored 401(k). What is the total saver's credit that Deborah can claim for 2020? Use Exhibit 13-8.

Accepted Answer

The answer of Deborah (single, age 29)earned $25,000 in 2020....

Question 9

Yvette is a 44-year-old self-employed contractor (no employees). During 2020, her Schedule C net income was $540,000. Assume Yvette has no contributions to other retirement plans. What is the maximum amount that Yvette can contribute to (1)a SEP IRA and (2)an individual 401(k)? (Round your answers to the nearest whole number.)

Accepted Answer

The answer of Yvette is a 44-year-old self-employed contractor (no...

Question 10

Ryan, age 48, received an $8,000 distribution from his traditional IRA to pay for medical expenses (above the 7.5% of AGI floor). Ryan has made only deductible contributions to the IRA and his marginal tax rate is 28 percent. What amount of taxes and early distribution penalties will Ryan be required to pay on the distribution?

Accepted Answer

The answer of Ryan, age 48, received an $8,000 distribution...

Question 11

Tatia, age 38, has made deductible contributions to her traditional IRA over the past few years. When her account balance was $32,000, shedirectly transferred the entire $32,000 out of her traditional IRA and immediately into a Roth IRA. Her current marginal tax rate is 25 percent. What amount of tax and penalty is she required to pay on this conversion?

Accepted Answer

The answer of Tatia, age 38, has made deductible contributions...

Question 12

Tatia, age 38, has made deductible contributions to her traditional IRA over the past few years. When her account balance was $30,000, she received a distribution of the entire $30,000 balance of her traditional IRA (not a coronavirus-related distribution). She retained $5,000 of the distribution to help her pay the taxes due from the distribution and she immediately contributed the remaining $25,000 to a Roth IRA. What amount of tax and early distribution penalty is she required to pay on the $30,000 distribution from the traditional IRA if her marginal tax rate is 25 percent?

Accepted Answer

The answer of Tatia, age 38, has made deductible contributions...

Question 13

Gordon is a 52-year-old self-employed contractor (no employees). During 2020, his Schedule C net income was $92,000. What is the maximum amount that Gordon can contribute to (1)a SEP IRA and (2)an individual 401(k)? (Round your answers to the nearest whole number.)

Accepted Answer

The answer of Gordon is a 52-year-old self-employed contractor (no...

Question 14

Ryan, age 48, received an $8,600 distribution from his traditional IRA to pay for medical expenses (above the 7.5% of AGI floor). Ryan has made only deductible contributions to the IRA and his marginal tax rate is 28 percent. What amount of taxes and early distribution penalties will Ryan be required to pay on the distribution?

Accepted Answer

The answer of Ryan, age 48, received an $8,600 distribution...

Question 15

Scott and his wife, Leanne (ages 39 and 37, respectively), earned $50,000 in 2020. Scott was able to contribute $2,400 ($200/month)to his employer-sponsored 401(k). What amount of saver's credit can Scott and Leanne claim in 2020?

Accepted Answer

The answer of Scott and his wife, Leanne (ages 39...

Question 16

Ryan, age 48, received an $10,200 distribution from his traditional IRA to pay for medical expenses (above the 7.5% of AGI floor). Ryan has made only deductible contributions to the IRA and his marginal tax rate is 28 percent. What amount of taxes and early distribution penalties will Ryan be required to pay on the distribution, assuming the distribution is not a coronavirus-related distribution?

Accepted Answer

The answer of Ryan, age 48, received an $10,200 distribution...

Question 17

Gordon is a 52-year-old self-employed contractor (no employees). During 2020, his Schedule C net income was $88,000. What is the maximum amount that Gordon can contribute to (1)a SEP IRA and (2)an individual 401(k)? (Round your answers to the nearest whole number.)

Accepted Answer

The answer of Gordon is a 52-year-old self-employed contractor (no...

Quiz 13: Retirement Savings and Deferred Compensation

Aiko (single, age 29)earned $40,600 in 2020. He was able to contribute $2,160 ($180/month)to his employer-sponsored 401(k). What is the total saver's credit that Aiko can claim for 2020? Exhibit 13-8

Aiko (single, age 29)earned $40,000 in 2020. He was able to contribute $1,800 ($150/month)to his employer-sponsored 401(k). What is the total saver's credit that Aiko can claim for 2020? Exhibit 13-8

Deborah (single, age 29)earned $26,100 in 2020. Deborah was able to contribute $1,764 ($147/month)to her employer-sponsored 401(k). What is the total saver's credit that Deborah can claim for 2020? (Use Exhibit 13-8)

Deborah (single, age 29)earned $25,000 in 2020. Deborah was able to contribute $1,800 ($150/month)to her employer-sponsored 401(k). What is the total saver's credit that Deborah can claim for 2020? Use Exhibit 13-8.

Gordon is a 52-year-old self-employed contractor (no employees). During 2020, his Schedule C net income was $92,000. What is the maximum amount that Gordon can contribute to (1)a SEP IRA and (2)an individual 401(k)? (Round your answers to the nearest whole number.)

Scott and his wife, Leanne (ages 39 and 37, respectively), earned $50,000 in 2020. Scott was able to contribute $2,400 ($200/month)to his employer-sponsored 401(k). What amount of saver's credit can Scott and Leanne claim in 2020?

Gordon is a 52-year-old self-employed contractor (no employees). During 2020, his Schedule C net income was $88,000. What is the maximum amount that Gordon can contribute to (1)a SEP IRA and (2)an individual 401(k)? (Round your answers to the nearest whole number.)