Qualified Retirement Plans Including Section 401(K) Plans (LO 5.4) What is the maximum tax-deferred contribution that can be made to a Section 401(k) plan by an employee under age 50 in 2020? a.$26,000 b.$19,500 c.$19,000 d.$20,000 e.$56,000
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Qualified Retirement Plans Including Section 401(K) Plans (LO 5.4)
What is the maximum tax-deferred contribution that can be made to a Section 401(k) plan by an employee under age 50 in 2020?
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- Individual Retirement Accounts (LO 5.3) Donna, age 42 and a single taxpayer, has a salary of $104,500 and interest income of $20,000. What is the maximum amount Donna can contribute to a Roth IRA for 2020? a.$6,000 b.$3,850 c.$5,800 d.$5,000 e.Some other amountWhich of the following is TRUE regarding qualified retirement plans? Distributions are taxable only prior to age 59½. Contributions are made with 100-percent after-tax dollars. Distributions are subject to a 10-percent penalty. Contributions are made with 100-percent pretax dollars.An employer maintains pension trust for its employees. The following information are made: Description 2018 2019 2020 Current service costs 1,500,000 1,700,000 2,000,000 Past service costs 800,000 600,000 How much is the deductible pension contributions for the year 2020?
- 1. The annual contribution limit to a 401(k) plan is _____. Answer: A. $6,000 B. $7,000 C. $13,500 D. $19,500 2. For an individual who is 45 years of age and has taxable earnings of $27,400, the annual contribution limit to a Payroll Deduction IRA is $_____. Answer: A. $6,000 B. $7,000 C. $5,500 D. $6,500 3. Louisa is an employee of Maroon Corp. Louisa files as Married Filing Jointly on her tax return. Over what amount will Maroon Corp. begin to withhold the additional Medicare tax from her earnings? Answer: A. $0 B. $125,000 C. $200,000 D. $250,000What type of defined contribution plan allows participants to contribute after-tax amounts to their retirement account? Select one: a. Roth 401(k) b. 403(b) c. 401(k) d. 457Q1. Your employer uses a flat benefit formula to determine retirement payments to its employees. The fund pays an annual benefit of $2,500 per year of service. Calculate your annual benefit payment for 25, 28 and 30 years of service.
- Bonita Company sponsors a defined benefit pension plan. The corporation’s actuary provides the following information about the plan. January 1, 2020 December 31, 2020 Vested benefit obligation $1,520 $1,930 Accumulated benefit obligation 1,930 2,700 Projected benefit obligation 2,510 3,360 Plan assets (fair value) 1,730 2,670 Settlement rate and expected rate of return 10% Pension asset/liability 780 ? Service cost for the year 2020 400 Contributions (funding in 2020) 690 Benefits paid in 2020 200 (a2) Prepare the journal entries at December 31, 2020, to record pension expense and related pension transactions. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020There is a cap on the amount that an employee or employer has to pay for Social Security contributions. The cap for the 2023 tax year is $9,932.40. How much money would someone have to earn for that amount to be 6.2% of their income?A taxpayer has a pension income of £3,100 a month assuming there is no other income. What is the income tax liability for tax year 2021-22? a.£7,440 b.£4,926 c.£0 d.£1,000
- What amount should be recorded as pension liability on December 31, 2021? a. ₱ 45,000 b. ₱ 25,000 c. ₱ -0- d. ₱ 20,000Bonita Company sponsors a defined benefit pension plan. The corporation’s actuary provides the following information about the plan. January 1, 2020 December 31, 2020 Vested benefit obligation $1,520 $1,930 Accumulated benefit obligation 1,930 2,700 Projected benefit obligation 2,510 3,360 Plan assets (fair value) 1,730 2,670 Settlement rate and expected rate of return 10% Pension asset/liability 780 ? Service cost for the year 2020 400 Contributions (funding in 2020) 690 Benefits paid in 2020 200 (a1) Prepare a 2020 pension worksheet. (Enter all amounts as positive.) BONITA COMPANYPension Worksheet—2020 General Journal Entries Memo Record Entries Items Annual PensionExpenseWhat is the maximum amount a 55-year-old taxpayer and 52-year-old spouse can put into a Traditional or Roth IRA for 2020, assuming they earn $70,000 in total and are not participants in pension plans?
