Question

and Income Planning-Application Quest Retirement Savings (Published question released February, (Published question released Februan 1999) 9, 1999; updated) A client becomes age 70'% on October 1 of this year and must receive a minimurm A premature distribution from a qualifi retirement plan is allowed at age 52 without t, which had iio o h IRA account, had alue at the beginning of the current year of ibution from his IRA accoun 10% additional tax when a participant: 48.000. His spouse, age 63, is the of the IRA account. Their (1) Becomes obligated for payment combined life expectancy according to IRS tables is 27.4 years. If the client takes a $1,000 distribution by next April 1 (using the Uniform Lifetime Table), what will be the plan benefits to an alternate pa under a Qualified Domestic Relations Order (QDRO) (2) Separates from service and takes accepted form of systematic payment approximate tax penalty? (3) Remains with the current emplo but elects to take systematic payments over the lives of the participant and his or her spouse A. SO C. $500 D. $800 E. $1,000 A. (1) only B. (3) only C. (1) and (2) only D. (1),(2), and (3) 8. (Published question released February 1999, updated) What is the early withdrawal penalty for a SIMPLE IRA plan during the 2-year period beginning on the date the employee first participated in the SIMPLE IRA plan? A. 10% B. 15% D. 25% O 2018 Keir Financial Education, LLO www.keirsuccess.com 60.30

Answer 1

7) Solution :

Given data:

Client becomes age to this year = 70 1/2 years

His spouse age = 63

The value at the beginning of this year = $ 48,000

client takes money or with drawa = $ 1,000

Their Combined life expectancy = 27.4 years

Now we have to find out the :

The approximate net tax penalty :

Formula of net tax penalty = 50% of ( required minimum distribution - Client takes money )

Now, required minimum distribution =  The value at the beginning of this year / life expectancy

= $ 48,000 / 27.4 years

= $1751.82

Now, net tax penalty = 50% of ( $1751.82 - $1000 )

= 50% of ( $ 751.82 )

=50/100 ( $ 751.82 )

= 0.5 ( $ 751.82 )

net tax penalty = $ 375.9

$\therefore$ The net tax penalty = $ 376

Note:

What i am getting the answer is not available in the options, but the process is correct .

9) Solution :

Given data:

Retirement plan allowed at age = 52

Without additional tax = 10%

Now we have to find out the :

From the three statement which is correct :

From the question the correct answer is "option is A "

The  option is A - 1 only

• Untimely circulations (previously achieving age 59 1/2 years) are at risk for extra 10% early with drawl assess except if exclusion applies.

1) first point in the inquiry is qualified for untimely appropriation.

2) detachment from administration before 55 years (50 years for open well being representatives) of age is assessable.

3) is assessable.

Note: As per the HOMEWORKLIB RULES, two questions are enough. so i am answered the question 7 and 9 . if you want remaining question please re upload as another question.

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