Section 401 (K) plans: who can use them and who cannot use them.
Homework Answers
Any employer and employees can use them. Employees can make contributions to their 401(k) accounts through automatic payroll withholding, and their employers can match some or all of those contributions.
Any employer and employees can use them. Employees can make contributions to their 401(k) accounts through automatic payroll withholding, and their employers can match some or all of those contributions.
401(k) plans are usually subject to FICA taxes.
Multiple Choice 401(k) plans are usually subject to FICA taxes. All 401(k) plans are cafeteria plans. 401(k) plans always reduce income tax liability. 401(k) plans are exempt from all payroll taxes.
36. What is a difference between a traditional Section 401(k) and a Section 401(k) plan established...
36. What is a difference between a traditional Section 401(k) and a Section 401(k) plan established as part of a SIMPLE? A. The SIMPLE 401(k) may not include loan or hardship withdrawal provisions similar to the traditional Section 401(k). B. The SIMPLE 401(k) does not require a mandatory employer contribution, unlike a traditional Section 401(k). C. The elective deferral amounts that are possible in a SIMPLE 401(k) are greater than those permitted in the traditional Section 401(k) plan form. D....
Sarina has decided to contribute to a savings program. She can open a traditional 401(k) or...
Sarina has decided to contribute to a savings program. She can open a traditional 401(k) or a Roth 401(k). She has determined that she can afford a $12,000 contribution. Sarina's salary is $58,500 per year, and she is in the 25% tax bracket. Thus, if Sarina decides to go with a traditional 401(k), what is her contribution amount? $ What amount is offset via a reduced tax bill? $ If, instead, she decides to go with a Roth 401(k), what...
1) Keisha (50 years of age) is considering whether to participate in her company's Roth 401(k)...
1) Keisha (50 years of age) is considering whether to participate in her company's Roth 401(k) or traditional 401(k). This year, she plans to invest either $4,000 in a Roth 401(k) or $5,000 in a traditional 401(k). Keisha plans on leaving the contribution in the retirement account for 20 years when she will receive a distribution of the entire balance in the account. Her employer does not have a matching program for employee contributions to retirement accounts. Assume Keisha can...
9-92. Many companies have changed their employee retirement plans to ones based on 401(k) savings. An...
9-92. Many companies have changed their employee retirement plans to ones based on 401(k) savings. An article in a business magazine states that the average 401(k) balance is $91,800 (source: Donna Rosato, 401(k) savings hit a record high. How do you stack up?" http://time.com/money, Apr. 29, 2015). A regional brokerage firm wishes to test whether its clients' accounts average more than this amount. A firm manager selects a random sample of 55 clients and finds a sample average of $94,785....
If a loan is to be provided from a Section 401(k) profit-sharing plan and is NOT...
If a loan is to be provided from a Section 401(k) profit-sharing plan and is NOT to be considered a taxable distribution, it must be adequately secured with negotiable collateral O available to all owners over age 5972 generally repaid within 5 years an amount no greater than $100,000
Ms. Jost participates in her employer's Section 401(k) plan, which obligates the employer to cont...
Ms. Jost participates in her employer's Section 401(k) plan, which obligates the employer to contribute 25 cents for every dollar that an employee elects to contribute to the plan. This year, Ms. Jost's salary is $110,000, and she elects to contribute the maximum to her Section 401(k) account. a. How much of Ms. Jost's salary is taxable this year? b. Compute the total contribution to Ms. Jost's plan. c. Compute the employer's deduction for compensation paid to Ms. Jost Complete...
Ms. Jost participates in her employer’s Section 401(k) plan, which obligates the employer to contribute 25...
Ms. Jost participates in her employer’s Section 401(k) plan, which obligates the employer to contribute 25 cents for every dollar that an employee elects to contribute to the plan. This year, Ms. Jost’s salary is $110,000, and she elects to contribute the maximum to her Section 401(k) account. How much of Ms. Jost’s salary is taxable this year? Compute the total contribution to Ms. Jost’s plan. Compute the employer’s deduction for compensation paid to Ms. Jost.
Which of the following statements comparing a SIMPLE IRA with a 401(k) plan is correct? ...
Which of the following statements comparing a SIMPLE IRA with a 401(k) plan is correct? (A) The same amount of salary deferral is permitted for employees in both plans. (B) The participants are able to withdraw their money more easily from a 401(k) than from a SIMPLE IRA. (C) The employer may make matching and nonelective contributions with both plans. (D) If rank-and-file employees did not participate, a 401(k) plan would generally not work, but a SIMPLE IRA would still work.
Please solve a - c Ms. Jost participates in her employer's Section 401(k) plan, which obligates...
Please solve a - c
Ms. Jost participates in her employer's Section 401(k) plan, which obligates the employer to contribute 25 cents for every dollar that an employee elects to contribute to the plan. This year, Ms. Jost's salary is $110,000, and she elects to contribute the maximum to her Section 401(k) account a. How much of Ms. Jost's salary is taxable this year? b. Compute the total contribution to Ms. Jost's plan. c. Compute the employer's deduction for compensation...
36. What is a difference between a traditional Section 401(k) and a Section 401(k) plan established as part of a SIMPLE? A. The SIMPLE 401(k) may not include loan or hardship withdrawal provisions similar to the traditional Section 401(k). B. The SIMPLE 401(k) does not require a mandatory employer contribution, unlike a traditional Section 401(k). C. The elective deferral amounts that are possible in a SIMPLE 401(k) are greater than those permitted in the traditional Section 401(k) plan form. D....
Sarina has decided to contribute to a savings program. She can open a traditional 401(k) or a Roth 401(k). She has determined that she can afford a $12,000 contribution. Sarina's salary is $58,500 per year, and she is in the 25% tax bracket. Thus, if Sarina decides to go with a traditional 401(k), what is her contribution amount? $ What amount is offset via a reduced tax bill? $ If, instead, she decides to go with a Roth 401(k), what...
9-92. Many companies have changed their employee retirement plans to ones based on 401(k) savings. An article in a business magazine states that the average 401(k) balance is $91,800 (source: Donna Rosato, 401(k) savings hit a record high. How do you stack up?" http://time.com/money, Apr. 29, 2015). A regional brokerage firm wishes to test whether its clients' accounts average more than this amount. A firm manager selects a random sample of 55 clients and finds a sample average of $94,785....
If a loan is to be provided from a Section 401(k) profit-sharing plan and is NOT to be considered a taxable distribution, it must be adequately secured with negotiable collateral O available to all owners over age 5972 generally repaid within 5 years an amount no greater than $100,000
Ms. Jost participates in her employer's Section 401(k) plan, which obligates the employer to contribute 25 cents for every dollar that an employee elects to contribute to the plan. This year, Ms. Jost's salary is $110,000, and she elects to contribute the maximum to her Section 401(k) account. a. How much of Ms. Jost's salary is taxable this year? b. Compute the total contribution to Ms. Jost's plan. c. Compute the employer's deduction for compensation paid to Ms. Jost Complete...
Please solve a - c
Ms. Jost participates in her employer's Section 401(k) plan, which obligates the employer to contribute 25 cents for every dollar that an employee elects to contribute to the plan. This year, Ms. Jost's salary is $110,000, and she elects to contribute the maximum to her Section 401(k) account a. How much of Ms. Jost's salary is taxable this year? b. Compute the total contribution to Ms. Jost's plan. c. Compute the employer's deduction for compensation...
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