Mabel is 45 and earned $30,000 in 2018.  If she contributed $6,000 to her traditional IRA, what would be her excise penalty?. Hannah, age 56, earned $58,000 in 2018.  She is also a participant in a qualified plan to which she contributed $18,500.   How much can she contribute to a traditional IRA in 2018?$6,500 b. $5,500 c. $0 she is ineligible   d. $7,000 In question 3 above, would her contribution to a traditional IRA be tax-deductible?Yes b. NoIf you own a Roth IRA, are you subject to Required Minimum Distributions?Yes b. No Bernice is age 54 and her granddaughter, age 18, will be attending UMSL in the Fall 2018. Bernice would like to withdraw $15,000 from her traditional IRA to pay for some of her granddaughter’s college expenses. She asks if this withdrawal can be made without a 10% penalty.  You tell her:No way b. no 10% penalty c. tax on withdrawal and 10% penalty d. none of these answers.Gus is 72 and works part-time earning $16,000 per year. He asks you whether he can contribute funds to a Roth IRA. You reply:Yes, Roth IRA allow contributions after age 70 and ½No, Roth IRA are just like traditional IRAs. No contributions after the year in which you attain 70 and ½. Can an owner of a traditional IRA invest his IRA funds into a mutual fund investing in gold?Yes b. No Janet just came back from South Africa and was impressed with the South African coin, the Krugerrand. She decides to use her Roth IRA money to invest in the Krugerrand. What are the consequences to Janet of her investment?no consequencesthe investment is a deemed distribution subject to taxes and 10% penalty Albert is 62 and decides to take a distribution of $12,500 from his Roth IRA. The funds in the Roth IRA were contributed 7 years ago. Is this a qualified distribution?a Yes    b. No

Question
Asked Feb 27, 2019
102 views

Mabel is 45 and earned $30,000 in 2018.  If she contributed $6,000 to her traditional IRA, what would be her excise penalty?

. Hannah, age 56, earned $58,000 in 2018.  She is also a participant in a qualified plan to which she contributed $18,500.   How much can she contribute to a traditional IRA in 2018?

$6,500 b. $5,500 c. $0 she is ineligible   d. $7,000

 

In question 3 above, would her contribution to a traditional IRA be tax-deductible?

Yes b. No

If you own a Roth IRA, are you subject to Required Minimum Distributions?

Yes b. No

 

Bernice is age 54 and her granddaughter, age 18, will be attending UMSL in the Fall 2018. Bernice would like to withdraw $15,000 from her traditional IRA to pay for some of her granddaughter’s college expenses. She asks if this withdrawal can be made without a 10% penalty.  You tell her:

No way b. no 10% penalty c. tax on withdrawal and 10% penalty d. none of these answers.

Gus is 72 and works part-time earning $16,000 per year. He asks you whether he can contribute funds to a Roth IRA. You reply:

Yes, Roth IRA allow contributions after age 70 and ½

No, Roth IRA are just like traditional IRAs. No contributions after the year in which you attain 70 and ½.

 

Can an owner of a traditional IRA invest his IRA funds into a mutual fund investing in gold?

Yes b. No

 

Janet just came back from South Africa and was impressed with the South African coin, the Krugerrand. She decides to use her Roth IRA money to invest in the Krugerrand. What are the consequences to Janet of her investment?

no consequences

the investment is a deemed distribution subject to taxes and 10% penalty

 

Albert is 62 and decides to take a distribution of $12,500 from his Roth IRA. The funds in the Roth IRA were contributed 7 years ago. Is this a qualified distribution?

a Yes    b. No

 

check_circle

Expert Answer

Step 1

Mabel is 45 and earned $30,000 in 2018.  If she contributed $6,000 to her traditional IRA, what would be her excise penalty? 

In  2018, a person can contribute the lesser of $5,500 or taxabale compensation to traditional IRA if their age is less than 50 years. 

Since Mabel's age (45) is less than 50, the max...

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Finance

Related Finance Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: Consider the following two mutually exclusive projects: year      cash flow A            cash flow B...

A: Let me state upfront that none of the alternatives listed in the question states the correct answer....

question_answer

Q: Suppose you pay 10 to buy a European (K=100, t=2) call option on a given security.  Assuming a conti...

A: Let S be the proce of the security and K be the stirke price of the call option and C is the cost to...

question_answer

Q: I asked this question (provided below) and was able to follow the response.  I also got the same ans...

A: Thanks a lot for appreciating the earlier solution. I also appreciate your question. Let me help you...

question_answer

Q: UBTECH Robotics is expected to generate the following free cash flows over the next fiveyears. After...

A: Let Ci be the free cash flow (FCF) for year i.Please note that the question talks about forecast of ...

question_answer

Q: Find the following values for a lump sum assuming annual compounding: The future value of $500 inve...

A: Before we get into the solution, let's understand two reciprocal concepts:If present value (PV) is k...

question_answer

Q: Required: Use an Excel spreadsheet to calculate the net present value NPV from a "Parent company per...

A: Calculating the value of total cost of plant and depreciation expenses using straight-line method in...

question_answer

Q: Simone's Sweets is an all-equity firm that has 9,100 shares of stock outstanding at a market price o...

A: Calculating the earnings per share (EPS) of levered firm and unlevered firm. We have,Number of stock...

question_answer

Q: Given the following information for Watson Power Co., Find the WACC. Assume the company’s tax rate i...

A: Calculation of WACC:

question_answer

Q: Moerdyk Corporation's bonds have a 9-year maturity, a 7.75% semiannual coupon, and a par value of $1...

A: The price of a bond can be calculated using the PV function in excel. We have to select the inputs o...