4. Rachel and Dustin Lutts are self-employed photographers. They pay 100% of the PPO insurance premium of $12,640 annually. They also have a dental plan that costs $866 annually and a vision plan that costs $444 annually. The premiums are paid quarterly. How much do they pay each quarter?

4. Rachel and Dustin Lutts are self-employed photographers. They pay 100% of the PPO insurance premium of $12,640 annually. They also have a dental plan that costs $866 annually and a vision plan that costs $444 annually. The premiums are paid quarterly. How much do they pay each quarter?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter4: Income Exclusions

Section: Chapter Questions

Problem 38P

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Concept explainers

Employer Pension Plan

An employer pension plan is a retirement benefit provided by an employer to employees before or after they retire. Over the course of the employees' working lives, the employer should invest a lump sum or make monthly contributions to investment schemes in employees' names. It is the employer's legal responsibility to provide employees with retirement plans that support them with guaranteed financial security in retirement.

Question

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4. Rachel and Dustin Lutts are self-employed
photographers. They pay 100% of the PPO insurance
premium
of $12,640 annually. They also have a dental plan that costs $866 annually
and a vision plan that costs $444
annually. The premiums are paid quarterly. How much do they pay each
quarter?

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