2.What feature is a component of a Defined Contribution Plan? 3. What type of product should...
2.What
feature is a component of a Defined Contribution Plan?
3. What type of product should young workers avoid
until they are close to retirement age?
4. What strategy will do the most to reduce the fees
taken from investments you make?
5. You are trying to decide between a Roth IRA and a
traditional IRA. What feature would help you decide which type of
IRA to select?
Homework Answers
2]
In a defined-contribution plan, each employee has a separate account. The investments in which the funds are invested are chosen by the employee, and hence the risk of investment lies with the employee, and the final payout is not determined beforehand.
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2.What
feature is a component of a Defined Contribution Plan?
3. What type of product should...
3. You are starting to plan for your retirement and want to determine the optimal type...
3. You are starting to plan for your retirement and want to determine the optimal type of retirement account to establish in light of different tax treatments on the accounts. Suppose that you are 30 years from retirement and that your investments will be in government and corporate bonds. You expect that you will be able to afford pre-tax contributions of $5,000 per year for the next ten years. After that, you expect to have gotten promoted at work, allowing...
QUESTION 16 plan at work, A 529 plan is: A defined contribution retirement plan offered by...
QUESTION 16 plan at work, A 529 plan is: A defined contribution retirement plan offered by not-for-profit institutions A type of retirement plan that individuals can make use of, regardless of whether they are covered by The savings account component in a Health Savings Account An account that allows you to purchase life insurance with before tax dollars. A tax-sheltered savings accounŅor higher education expenses.
Smith, age 38, is an active participant in his employer’s defined benefit plan, but he would...
Smith, age 38, is an active participant in his employer’s defined benefit plan, but he would also like to makea deductible contribution to a traditional IRA this year. Smith is married, files a joint return with his husband, who is also an active member in his employer’s retirement plan, and has an AGI of $113,500 in 2018. What is the maximum deductible contribution that Smith can maketo a traditionalIRA?
3. A second type of IRA is the "Roth IRA." Suppose you open a Roth IRA...
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...
What type of pension plan would an employer want to offer, a defined contribution plan or...
What type of pension plan would an employer want to offer, a defined contribution plan or a defined benefit plan? Explain your reasoning behind your answer.
peter molloy is considering making a contribution to an IRA, but his employer has a profit-sharing...
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...
please answer all 3!! QUESTION 31 A 529 plan is: A defined contribution retirement plan offered...
please answer all 3!!
QUESTION 31 A 529 plan is: A defined contribution retirement plan offered by not for proftinstitutions "A type of retirement plan that individuals can make use of, regardless of whether they are covered by a retirement plan at work." The savings account component in a Health Savings Account An account that allows you to purchase life insurance with before tax dollars. Atax sheltered savings account for higher education expenses QUESTION 32 Vulcan Vateral stock has a...
I need help answering E Comprehensive Problem 13-87 (LO 13-1, LO 13-2, LO 13-3, LO 13-4,...
I need help answering E
Comprehensive Problem 13-87 (LO 13-1, LO 13-2, LO 13-3, LO 13-4, LO 13-5, LO 13-6) Gerry (age 56) and Elaine (age 54) have been married for 12 years and file a joint tax return. The couple lives in an apartment in downtown Manhattan. Gerry's father, Mortey, recently retired from Del Boca Vista Corporation (DBVC), where he worked for many ears. Mortey participated in DBVC's defined benefit plan. Elaine is an editor and works for Pendent...
1)Which of the following is an important difference between qualified and nonqualified retirement plans? a. Qualified...
1)Which of the following is an important difference between qualified and nonqualified retirement plans? a. Qualified plans provide benefits for retirees who were high-performing employees, while nonqualified plans provide benefits for retirees whose performance did not meet minimum job expectations. b. Employer contributions are deductible when paid to a qualified plan, but deductible when paid to the employee under a nonqualified plan. c. Employer contributions to nonqualified plans are subject to dollar limits, but contributions to qualified plans are unlimited. d. Earnings of...
I need help plz Robert has six investment options for his defined contribution plan which include:...
I need help plz Robert has six investment options for his defined contribution plan which include: 1) money market fund; 2) Cdn bond fund; 3) Cdn balanced fund; 4) International balanced fund; 5) Cdn equity fund and 6) International equity fund. Where should he invest the funds for maximum growth? Assuming he gets 8% annual compound returns what is the expected future value of the pension at his age 65? (4 marks) ADDITIONAL INFORMATION: Age: Robert is currently 30 years...
QUESTION 16 plan at work, A 529 plan is: A defined contribution retirement plan offered by not-for-profit institutions A type of retirement plan that individuals can make use of, regardless of whether they are covered by The savings account component in a Health Savings Account An account that allows you to purchase life insurance with before tax dollars. A tax-sheltered savings accounŅor higher education expenses.
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...
please answer all 3!!
QUESTION 31 A 529 plan is: A defined contribution retirement plan offered by not for proftinstitutions "A type of retirement plan that individuals can make use of, regardless of whether they are covered by a retirement plan at work." The savings account component in a Health Savings Account An account that allows you to purchase life insurance with before tax dollars. Atax sheltered savings account for higher education expenses QUESTION 32 Vulcan Vateral stock has a...
I need help answering E
Comprehensive Problem 13-87 (LO 13-1, LO 13-2, LO 13-3, LO 13-4, LO 13-5, LO 13-6) Gerry (age 56) and Elaine (age 54) have been married for 12 years and file a joint tax return. The couple lives in an apartment in downtown Manhattan. Gerry's father, Mortey, recently retired from Del Boca Vista Corporation (DBVC), where he worked for many ears. Mortey participated in DBVC's defined benefit plan. Elaine is an editor and works for Pendent...
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