a) qualified , these annuities are purchased with pre-tax funds on which taxes have not been paid yet.
35. An annuity where the initial account balance consists of pre-tax contributions is referred to as...
Match the following terms with their definition: Permits an employee to make pre-tax contributions to the profit sharing plan - Cash or Deferred Arrangement (CODA) - Forfeiture Allows higher contributions into the qualified plan for high-income * employees - A Social Security Integration - Enables an employee to make after-tax contributions to a qualified plan in excess of the normal contribution limits - A Thrift Plan Non-vested benefit lost when an employee leaves the profit sharing plan
Harshim made after-tax contributions to his employer's qualified plan of $7,000. At the time he requested a nonperiodic distribution, his account balance was $49,000. He received a one-time distribution of $14,000. How much of the distribution is tax free? a.$0 b. $2000 C. $7000 d. $14,000
Your client's 401K account has an initial balance of $6,300 and has monthly contributions of $500. It earns 6.5% annual interest, compounded monthly, for 34 years. At the age of retirement, your client will "annuitize" their 401K balance and take monthly payments for 30 years. Their investments during retirement will earn 4.5% per year, with monthly compounding. Inflation is 1.9% annually. What is the value of your client's monthly payments in real dollars?
Your client's 401K account has an initial balance of $5,600 and has monthly contributions of $100. It earns 5% annual interest, compounded monthly, for 36 years. At the age of retirement, your client will "annuitize" their 401K balance and take monthly payments for 26 years. Their investments during retirement will earn 3% per year, with monthly compounding. Inflation is 3.3% annually. What is the value of your client's monthly payments in real dollars?
R2.43: Data that consists of classifications rather than measurements is referred to as: A. Interval B. Variable C. Continuous D. Attribute
Can I get assistance with this question. 12. Bob, age 35, has already accumulated $100,000 in retirement assets. He expects to retire at age 65 and live until age 90. He expects to earn 8% before retirement and 6% after retirement. If he makes no additional contributions to his account and he receives a fixed (non-increasing) monthly annuity from the account for life, what is the amount he could withdraw at the beginning of each month in retirement? a. $3,682.12...
Zaynab Inc. is considering a new 4-year expansion project that consists of setting up a new manufacturing plant. The initial investment in fixed assets is estimated to $3.1 million. The manufacturing plant falls into Class 10 for tax purposes (CCA rate of 30 percent per year). We assume that there is no salvage value for this project which is estimated to generate additional pre-tax sales of 2,500,000 per year. Annual pre-tax variable costs are expected to be $860,000 and annual...
1. The structure of repayment for most long-term bonds consists of a. fixed coupon payments every year until maturity. b. interest payments that vary by the yield to maturity each year. c. fixed coupon payments each year plus the face value or par value at maturity. d. converted payments from interest to dividends halfway to the bond's maturity. e. a balloon payment at maturity. 2. For eligible individuals, Classic IRAs are a. tax deferred, taxed on the contributions but tax...
Compute the PV of a growing annuity with an initial monthly payment of $2,500, growing at 4% per year, a 35-year life and an annual discount rate of 6%. Select one: O a. $546,556.02 b. $847,917.43 c. $752,995.47 d. $332,778.24 e. $611,198.33