9. Which of the following statements concerning Roth IRAs is correct?
a. in the event of distributions from a Roth IRA, the earnings are deemed withdraw first.
b. A distribution from a Roth IRA must include both earnings and contributions
c. if the entire Roth IRA is distributed within 5r years to buy a car, only the earnings are subject to income tax, but the entire amount may be subject to penalty.
d. if distributions are made within 5 years of conversion from a traditional IRA, the conversion assets are subject to the 10% penalty, but not income tax.
10. Which of the following investments is permitted with an IRA or Roth IRA?
1) U.S. eagle gold coins
2) IBM Stock bought on margin
3) Universal variable life insurance contract.
A. 1 only
B. 1 and 2 only
C. 1 and 3 only
D. 2 and 3 only
11. In 2018, Craig Foster is 42 years of age and a participant in the 401(k) plan at his company. His gross income from his employment is $114000 and after salary deferral, his AGI is $111000. Craigs wife is 36 years of age and has not worked since the arrival of their first child. What is the maximum deduction the fosters could take for contribution to an IRA?
a. $0
b. $5500
c. $8250
D $11000
19. All the following statements concerning SEPs are correct,
except:
A. SEPs can be advantageous to employers who have high employee
turnover.
B. SEPs have no minimum contribution requirements.
C. SEPs are available to both self-employed individuals and
employees of corporations.
D. like defines contribution plans, SEPs must be installed before
the end of the tax year.
20. Which of the following statements concerning simplified
employee pension (SEP) plan is correct?
1) The annual limitation on contributions, 25 percent of
compensation, may not be applied separately to compensation from
more than one employer.
2) Part-time employees who have earned over $600 annually in 3 of
the last 5 years must be covered by the plan.
3) The employer can deny participant withdrawal rights until the
termination of employment.
A. 1 only
B. 2 only
C. 1 and 3 only
D. 2 and 3 only
E. 1, 2 and 3 only
9. Which of the following statements concerning Roth IRAs is correct? a. in the event of...
peter molloy is considering making a contribution to an IRA, but his employer has a profit-sharing plan. Plan benefits vest over 6 years, and peter is 60% vested. The employer made no contribution to the plan for the year. No employees have terminated during the year. Which of the following statements concerning Peter’s contribution to an IRA is correct? peters contribution will not be deductible because contributions are not required every year to profit-sharing plan. Peters contribution will be deductible...
4.How are distributions from qualified plans treated? a. Retirees must report distributions received as income. b. Retirees must report distributions received as income only if they are less than 59-1/2 years old. c. Retirees must report distributions received as income only if they are more than 70-1/2 years old. d. Retireesmust report distributions received as income only if employer contributions to the plan are greater than the allowable amounts. 6. Roscoe is 54, and is considering requesting a distribution this year from his employer’s...
D Question 7 1 pts Which of the following statements is NOT correct regarding the conversion of a traditional IRA to a Roth IRA? An amount distributed from a traditional IRA can be rolled over to a Roth IRA within 60 days of the distribution An amount in a traditional IRA may be transferred to a Roth IRA maintained by the same trustee The IRA owner's modified adjusted gross income (MAGI) cannot exceed $100,000 in the year of the conversion...
which of the following statements is true concerning when ira/roth contribution must be made ? A, if allison extends her 2017 tax return and then files it 10/15 she must make the contribution by 12/31. B,if travis files his 2017 tax return 3/15. he will need to have already made his Roth contribution
If an individual (or spouse) is an active participant in an employer-sponsored retirement plan, he or she cannot make a deductible IRA contribution. True or False If only one spouse is employed, and that spouse is not covered under an employer-sponsored retirement plan, then the non-working spouse can make a deductible contribution to his or her own IRA. True or False With a Roth IRA, contributions are deductible, the account grows tax-free, and distributions are not taxable. True or False...
Chapter 9 - Question 8 : Help me to explain this question. Thank you Jordan contributed $5,000 each year to her Roth IRA for eleven years. At age 57, Jordan’s IRA was worth $100,000 consisting of $55,000 in contributions, $25,000 in conversions from her 401(k) plan last year, and earnings of $20,000. What are the tax consequences if Jordan takes a complete distribution of the Roth IRA at age 57, once she has retired, to travel around the world? A....
All the following statements concerning HSAs are correct, EXCEPT: HSA distributions used by the participant-taxpayer for the family's medical expenses are excluded from the taxpayer's gross income. Any HSA distributions not used for medical expenses are subject to federal income taxes. If HSA contributions are less than the prescribed limits, the account earnings are included in the account holder's gross income for federal income tax purposes. Contributions will be deductible even if individuals do not itemize.
All the following statements concerning HSAs are correct, EXCEPT: A. Group of answer choices HSA distributions used by the participant-taxpayer for the family’s medical expenses are excluded from the taxpayer’s gross income. B. Any HSA distributions not used for medical expenses are subject to federal income taxes. C. If HSA contributions are less than the prescribed limits, the account earnings are included in the account holder’s gross income for federal income tax purposes. D. Contributions will be deductible even if...
Matt is 42 years old and received a $19,000 distribution from his Roth IRA, established in 2009. At the time of the distribution, the Roth IRA account totaled totaled $27,850: $17,000 regular contributions, $8,000 taxable conversion contributions made in 2016, and $2,850 earnings. How much of his distribution is taxable and subject to the early distribution penalty? a) $0 taxable; $0 penalized. b) $0 taxable; $2,000 penalized. c) $0 taxable; $19,000 penalized. d) $2,000 taxable; $2,000 penalized.
3. A second type of IRA is the "Roth IRA." Suppose you open a Roth IRA account. a. How much can you deposit into the account for 2019 if you are less than 50 years old? b. How are the Roth contributions treated for tax purposes? In other words, how does this contribution affect your taxes? c. When you make withdrawals in retirement, how are the distributions and the investment returns (the money you withdraw) taxed? d. Can you contribute...