Jalen just turned 71 years old on December 16, 2023. He knows nothing about personal income taxes and has alwaysrelied on his accountant and investment advisor to look after him. He is not too clear on what was said or by whichadvisor but he remembers one of them mentioning that he needed to take action on his Registered Retirement SavingsPlan (RRSP) before the end of the year. He also can't remember what was said about the different conversion optionsbut remembers that one of the options was not tax-efficient. Which is the least tax-efficient? Select one: O a. Purchasea term annuity.. b. Withdraw the RRSP. c. Transfer the funds to a Registered Retirement Income Fund (RRIF). . d.Transfer to a registered annuity.

An individual can save for retirement by contributing pre-tax income to a Registered Retirement…

Answered: Jalen just turned 71 years old on…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 57P

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Michael turned 25 years old on March 1, 2023, and just opened a Tax-Free Savings Account (TFSA) where he deposited $6,500. Help Michael with the scenarios below. Michael is aware of the following basics regarding TFSA’s: you can withdraw any amount from your TFSA whenever you want; all withdrawals are tax-free; withdrawing from your TFSA doesn’t result in lost TFSA contribution room; withdrawals you make this year will be added to your unused contribution room the following year (i.e. withdrawing from your TFSA has no effect on your contribution room in the year that you make the withdrawal, it only affects your contribution room for the following year); you can re-contribute any funds that you have withdrawn from your TFSA back into your account starting the year after the year in which you make the withdrawal (i.e. January 1st of the following year); and you can carry forward any uncontributed amounts into future years indefinitely. If Michael’s $6,500 TFSA investment decreases…
Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 71.00. During these years of part-time work, he will neither make deposits to nor take withdrawals from his retirement account. Exactly one year after the day he turns 71.0 when he fully retires, he will wants to have $2,749,902.00 in his retirement account. He he will make contributions to his retirement account from his 26th birthday to his 65th birthday. To reach his goal, what must the contributions be? Assume a 4.00% interest rate. Derek will deposit $2,596.00 per year into an account starting today and ending in year 9.00. The account that earns 15.00%. How much will be in the account 9.0 years from today?
Ralph has a $130,000 IRA with Red Investments. For personal reasons, he decides to move his funds to Blue Investments. He requests that his funds be distributed to him on August 20, 2018. What amount will Ralph receive from Red Investment? What is the last day Ralph can deposit the funds from Red Investments and avoid taxation in the current year? If the funds were distributed from a qualified retirement plan (not an IRA), how much would Ralph receive? Assuming the funds were distributed from a qualified retirement plan, not an IRA, how much will Ralph have to contribute to Blue Investments to avoid taxable income and any penalties?
Barney and Betty have been married for 15 years but are now getting divorced. They were married young and have one child, who is age 9. This is a very emotional time for both of them. If you were their adviser, which of the following would you recommend? Be sure to obtain individual credit All of the above are good recommendations Be certain to change beneficiary designations on retirement plans Make sure that you establish the tax basis of assets that are separated
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Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 74.00. During these years of part-time work, he will neither make deposits to nor take withdrawals from his retirement account. Exactly one year after the day he turns 74.0 when he fully retires, he will wants to have $2,565,252.00 in his retirement account. He he will make contributions to his retirement account from his 26th birthday to his 65th birthday. To reach his goal, what must the contributions be? Assume a 9.00% interest rate.
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Darius just retired. He is 65 years old and decided to attempt to prepare his 2022 personal income tax return for the first time. He understands that many miss taking the non-refundable tax credits that are due to them. He has read up on them and knows to claim the Age Amount non-refundable tax credit towards his federal taxes. The Age Amount is $7,898 and since the only requirement for this credit is net income and age, it is one of the easier tax deductions for seniors in Canada to claim. Darius' net income is $42,000. What is the non-refundable tax credit for the Age Amount? Hint: In 2022, the age credit is reduced at a rate of 15% when a taxpayer's income exceeds the threshold of $39,826. The non-refundable tax credit is calculated at the rate of 15%. Select one: a. $436 b. $1,504 c. $2,910 d. $1,136 please answer fast i give you upvote.
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Sam is currently 30 years of age. He owns his own business and wantsto retire at the age of 60. He has little confidence in the current SocialSecurity system. He wants to retire with an annual income of $72,000a year.a. If Sam believes he will live to age 90, how much does he have to accumulateby the time he reaches age 60 to receive $72,000 at the end of each yearfor the rest of his life? Sam believes he can earn 8 percent on his money in astock mutual fund.b. How much does he have to accumulate if he wants the payment of $72,000at the beginning of each year?c. What dollar amount of interest will Sam have earned during retirement if hereceives his $72,000 at the beginning of each year?
Danny and Sandy have come to your office to discuss some retirement planning issues. Danny will be turning age 65 in five months and Sandy is currently 63. Danny has not started collecting Social Security benefits yet because he is still working, and he is unsure whether he will retire this year or wait a few more years. Sandy has never worked outside the home. If he continues to work, Danny will have health insurance for both himself and Sandy through his employer with a $250 annual per person deductible, a 90% coinsurance, and a maximum out-of-pocket limit of $5,000. Danny’s share of the premium is $50 per pay. Many of their retirement questions have to do with Medicare and health insurance because both Danny and Sandy have existing health issues. All the following statements are proper advice for you to give Danny and Sandy, EXCEPT: Danny should delay enrollment in Medicare Part B until he is no longer covered under his employer’s health plan. Sandy will be eligible for…

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