Question

Chapter 8:

15.) Tracy age 46 is a self employed financial planner and has schedule C income from self employment of $ 56,000.He has failed to save for retirement until now. Therefore he would like to make the maximum contribution to his profit sharing plan. How much can he contribute to his profit sharing plan account?

a.)$9,464
b.)$10,409
c.)$11,200
d.)$14,000


17.)
Beth Ann age 55 is an attorney who practices on her own. Her assistant Buffy has worked with her for five years. Beth Ann is establishing a SEP for this year and is willing to make a contribution of 10 percent of Buffy’s salary to the SEP. If Beth Ann earns $90,000 after paying Buffy, her expenses and the contribution to Buffy’s SEP what is the most that she can contribute to the SEP on her behalf?

a.)$7,026
b.)$7,604
c.)$8,182
d.)$16,728


chapter 9-

3.) Robin and Robbie, both age 45,are married and filed joint return for 2014.Robbie earned a salary of $90,000 in 2014 and is covered by his employer’s 401(k) plan. Robbie and Robin earned interest of $30,000 in 2014 from a joint savings account. Robin is not employed and the couple had no other income. On April 15,2015,Robbie contributed $ 5,500 to an IRA for himself and $ 5,500 to an IRA for Robin. The maximum allowable IRA deduction on the 2014 joint return is

a.)$1,500
b.)$4,500
c.)$5,500
d.)$11,000


4.)Amy, divorced and age 55 received taxable alimony of $ 50,000 in 2014.In addition she received $ 1,800 in earnings from a part time job. Amy is not covered by a qualified plan. What was the maximum deductible IRA contribution that AMY could have made for 2014?

a.)$1,800
b.)$2,800
c.)$5,500
d.)$6,500


6.) For the year 2014 Katy(age 35)and Stefan(age 38)a married couple reported the following items of income.


                                       Katy                  Stefan                  Total:
Wages                            $50,000             --                         $50,000
Dividend income             $2,000             $1,200                  $3,200
Cash won from lottery    --                      $500                     $500
                                       $52,000            $1,700                  $53,700


Katy is covered by a qualified plan. Stefan does not work, he makes wine and drinks all day. Assuming a joint return was filed for 2014,what is the maximum tax deductible amount that they can contribute to their IRAs?

a.)$2,500
b.)$5,500
c.)$7,500
d.)$11,000


9.) Jim who is age 39,converts a $ 74,500.Traditional IRA to a Roth IRA in 2014.Jim’s adjusted basis in the traditional IRA is $ 10,000.He also makes a contribution of $5,500 to a Roth IRA in 2014 for the tax year 2014.If Jim takes a $ 4,000 distribution from his Roth IRA in 2015 when the account is worth $ 100,000,how much total federal income tax, including penalties, is due as a result of the distribution assuming his 2015 federal income tax rate is 28 percent.

a.)$0
b.)$224
c.)$800
d.)$1,120


chapter 10-

1.)Kim Cat age 42 earns $ 300,000 annually as an employee for CTM Inc. Her employer sponsors a SIMPLE retirement plan and matches all employee contributions made to the plan dollar for dollar up to 3% of covered compensation. What is the maximum contribution(employer and employee that can be made to Kim’s SIMPLE account in 2014?

a.)$19,650
b.)$21,000
c.)$24,000
d.)$26,500


6.)What is the maximum employee elective deferral contribution salary reductions)for an employee who is 45 years old under a 403(b) plan in 2014.?

a.)$9,000
b.)$11,000
c.)$17,500
d.)$23,000


13.) James age 58 has compensation of 4 150,000 and wants to defer the maximum to his public 457(b)plan. The normal retirement age for his plan is age 60.How much can he defer in 2014 if he has an unused deferral of $ 60,000 from age 40 to age 49?

a.)$17,500
b.)$23,000
c.)$35,000
d.)$40,000


19.) Dr.Means has taught accounting at FAU for the last 30 years and is expected to retire next year, at age 65.FAU sponsors a 403 (b) plan and a 457(b) governmental plan. She has been diligent and has always contributed the maximum amounts to each of the plans. If her salary is $ 100,000,how much can she contribute in total to both plans in 2014?

a.)$35,000
b.)$40,000
c.)$46,000
d.)$52,000

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Chapter 8:

15.) Answer: B...

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