Evelyn died in 2018 at the age of 58. Her traditional IRA had no designated beneficiary...
Homework Answers
Since Evelyn has no beneficiary designated, the Traditional IRA goes to her spouse, if alive. Or it goes to her estate. As per the IRS rules, any money of the IRA lying in the estate has to be distributed within 5 years after the year of the Evelyn's death. Due to this, a significant part of the money in the IRA goes to the government in form of taxes and the balance flows to the beneficiary determined as the rules. This also reduces the growth of the monies by reducing the life expectancy of the IRA.
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Evelyn died in 2018 at the age of 58. Her traditional IRA had no
designated beneficiary...
Question 40 of 100. Which of the following is subject to the 10-year distribution rule for...
Question 40 of 100. Which of the following is subject to the 10-year distribution rule for beneficiaries of certain inherited retirement plans? с Faye (67) died leaving her friend, Eloise (56), as the designated beneficiary of her 401(k). Maurice (86) died leaving his disabled daughter, Sophia (54), as the designated beneficiary of his traditional IRA no Coco (91) died leaving her neighbor, Malla (69), as the designated beneficiary of her traditional IRA. no When Francis (76) died, his 401(k) plan...
Tatia, age 38, single taxpayer, has made deductible contributions to her traditional IRA over the past...
Tatia, age 38, single taxpayer, has made deductible contributions to her traditional IRA over the past few years. When her account balance was $32,000, she 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 rollover?
Yuki (age 45 at year-end) has been contributing to a traditional IRA for years (all deductible...
Yuki (age 45 at year-end) has been contributing to a traditional IRA for years (all deductible contributions), and her IRA is now worth $46,000. She is trying to decide whether she should roll over her traditional IRA into a Roth IRA. Her current marginal tax rate is 25 percent. She plans to withdraw the entire balance of the account in 20 years and she expects to earn a before-tax rate of return of 5.6 percent on her retirement accounts and...
Question 3 of 75 Walter reached age 70% in September of 2017 traditional IRA? By what...
Question 3 of 75 Walter reached age 70% in September of 2017 traditional IRA? By what date is he required to begin taking the required minimum distribution from his December 31, 2017 April 1, 2018 April 18, 2018 O December 31, 2018
Yuki (age 45 at year-end) has been contributing to a traditional IRA for years (all deductible...
Yuki (age 45 at year-end) has been contributing to a traditional IRA for years (all deductible contributions) and her IRA is now worth $46,000. She is trying to decide whether she should roll over her traditional IRA into a Roth IRA. Her current marginal tax rate is 25 percent. She plans to withdraw the entire balance of the account in 20 years and she expects to earn a before-tax rate of return of 5.6 percent on her retirement accounts and...
Andre makes annual contributions of $5,000 to his traditional IRA. If he reaches age 70½ on...
Andre makes annual contributions of $5,000 to his traditional IRA. If he reaches age 70½ on January 22, 2018, what is the maximum deductible contribution that he can make for 2018? O B. $5,000 O C. $5,500 O D. $6,500
Yuki (age 45 at year-end) has been contributing to a traditional IRA for years (all deductible...
Yuki (age 45 at year-end) has been contributing to a traditional IRA for years (all deductible contributions), and her IRA is now worth $39,000. She is trying to decide whether she should roll over her traditional IRA into a Roth IRA. Her current marginal tax rate is 24 percent. She plans to withdraw the entire balance of the account in 20 years and she expects to earn a before-tax rate of return of 4.9 percent on her retirement accounts and...
Naomi was the beneficiary of a $100,000 insurance policy on her mother who died in January...
Naomi was the beneficiary of a $100,000 insurance policy on her mother who died in January 2017. It took the insurance company several months to make the payment so she received $100,206 in May 2017. She was a joint tenant on a bank account with her mother. She inherited the $14,000 in the account that had all been deposited by her mother. After a long battle with her medical insurance company, Naomi received a $7,000 reimbursement in 2017 for an...
37. Mrs. Shin retired in 2018 at age 63 and made her first withdrawal of $20,000...
37. Mrs. Shin retired in 2018 at age 63 and made her first withdrawal of $20,000 from her traditional IRA. At year-end, the IRA balance was $89,200. In 2019, she withdrew $22,000 from the IRA. At year-end, the account balance was $71,100. Determine how much of each annual withdrawal was taxable assuming that: a. Mrs. Shin's contributions to her IRA were fully deductible. b. Mrs. Shin made $26,500 nondeductible contributions to the IRA. C. Mrs. Shin made $37,950 nondeductible contributions...
On May 2, 2018, Lori makes a $5,000 contribution to her IRA, which had a fair...
On May 2, 2018, Lori makes a $5,000 contribution to her IRA, which had a fair market value (FMV) of $250,000 on January 1 and $200,000 on May 2 before the contribution was recorded. On June 14, Lori learned from her tax preparer that she was eligible to contribute only $4,500 for the year. As a result, the trustee withdraws the $500 and its earnings from the IRA on June 15 when the FMV of the IRA is $190,000. What...
Question 40 of 100. Which of the following is subject to the 10-year distribution rule for beneficiaries of certain inherited retirement plans? с Faye (67) died leaving her friend, Eloise (56), as the designated beneficiary of her 401(k). Maurice (86) died leaving his disabled daughter, Sophia (54), as the designated beneficiary of his traditional IRA no Coco (91) died leaving her neighbor, Malla (69), as the designated beneficiary of her traditional IRA. no When Francis (76) died, his 401(k) plan...
Yuki (age 45 at year-end) has been contributing to a traditional IRA for years (all deductible contributions), and her IRA is now worth $46,000. She is trying to decide whether she should roll over her traditional IRA into a Roth IRA. Her current marginal tax rate is 25 percent. She plans to withdraw the entire balance of the account in 20 years and she expects to earn a before-tax rate of return of 5.6 percent on her retirement accounts and...
Question 3 of 75 Walter reached age 70% in September of 2017 traditional IRA? By what date is he required to begin taking the required minimum distribution from his December 31, 2017 April 1, 2018 April 18, 2018 O December 31, 2018
Yuki (age 45 at year-end) has been contributing to a traditional IRA for years (all deductible contributions) and her IRA is now worth $46,000. She is trying to decide whether she should roll over her traditional IRA into a Roth IRA. Her current marginal tax rate is 25 percent. She plans to withdraw the entire balance of the account in 20 years and she expects to earn a before-tax rate of return of 5.6 percent on her retirement accounts and...
Andre makes annual contributions of $5,000 to his traditional IRA. If he reaches age 70½ on January 22, 2018, what is the maximum deductible contribution that he can make for 2018? O B. $5,000 O C. $5,500 O D. $6,500
37. Mrs. Shin retired in 2018 at age 63 and made her first withdrawal of $20,000 from her traditional IRA. At year-end, the IRA balance was $89,200. In 2019, she withdrew $22,000 from the IRA. At year-end, the account balance was $71,100. Determine how much of each annual withdrawal was taxable assuming that: a. Mrs. Shin's contributions to her IRA were fully deductible. b. Mrs. Shin made $26,500 nondeductible contributions to the IRA. C. Mrs. Shin made $37,950 nondeductible contributions...
On May 2, 2018, Lori makes a $5,000 contribution to her IRA, which had a fair market value (FMV) of $250,000 on January 1 and $200,000 on May 2 before the contribution was recorded. On June 14, Lori learned from her tax preparer that she was eligible to contribute only $4,500 for the year. As a result, the trustee withdraws the $500 and its earnings from the IRA on June 15 when the FMV of the IRA is $190,000. What...
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