Question

buying Health Saving Accounts paying medical premiums using Medicare paying Social Security taxes Question 15 Which of the following is a characteristic of a Section 529 Plan? . Individual contributions can exceed the Annual Gift Tax Exclusion of $15,000. . There is a 5% penalty if assets are not used for education. The beneficiary cannot be changed. A 529 Plan cannot invest in equities. Question 16 Which of the following assets can avoid both Estate Taxes and Probate? Personal Residence. Joint Property. Annual Gift Tax Exclusion of $15,000. Revocable Living Trust. Question 17 The current maximum Federal Estate Tax rate is - equal to an individual's top marginal tax rate 15% 35% 40% Question 18 A Health Savings Account (HSA) must be tied to a high deductible health policy. What is the minimum amount of this deductible in 2020 for a single individual? $1,000. $1,500. $1,400. $2,800.

Answer 1

Ques- 15

Ans- Option C. beneficiary cannot be charged.

As, 529 Plan is a nontaxable investment plan for Future higher education purposes. It can be used solely for the purposes of education else it will taxed with 10% penalty.

Ques- 16

Ans- Option C. annual gift tax exclusion of $ 15000.

Annual gift tax inclusion of $ 15000 is non taxable and avoids estate taxes.

Ques- 17.

Ans- Option D. The maximum limits of federal estate tax is 40%

Ques- 18.

Option C. $1400

HSA deduction is available at $ 1400 for self and $ 2800 for family.