7 Using the simplified method, determine the tax - free amount of the followingdistributions from a qualified pension plan. Contributions, if any, are made withpreviously taxed dollars. Use monthly payments table. Required: Person A, age63, made no contributions to the pension plan and will receive a $1,300monthly check for life. Person B, age 68, made contributions of $29,500 to thepension plan and will receive a monthly check of $2,600 for life. (Round youranswers to 2 decimal places.) Person C, age 72, made contributions of $27,000 to the pension plan and will receive monthly payments of $2,200 overher life and the life of her75-year-old husband. (Round your answers to 2decimal places.) Person D, age 71, made contributions of $40,000 to thepension plan. He will receive quarterly payments of $5,200 over his life and thelife of his 74-year-old wife. (Round your answers to 2 decimal places.) A Tax -free portion B Tax free portion C Tax free portion D Tax free portion

The question revolves around the taxation of distributions from a qualified pension plan using the…

Answered: Using the simplified method, determine…

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter6: Deductions And Losses: In General

Section: Chapter Questions

Problem 4DQ

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Which 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.
Under a Roth IRA, I. any taxpayer may contribute and deduct up to $6,000 deductible contributions per year. II. the maximum annual contribution is phased out for unmarried taxpayers with adjusted gross income between $124,000 and $139,000. Oa. Only statement I is correct. Ob, Only statement II is correct. Oc. Both statements are correct. Od. Neither statement is correct. Previous Next
Using the simplified method, determine the tax-free amount of the following distributions from a qualified pension plan. Individual contributions, if any, are made with previously taxed dollars. Use monthly payments table. Required: a. Person A, age 53, made no contributions to the pension plan and will receive a $700 monthly check for life. b. Person B, age 58, made contributions of $25,000 to the pension plan and will receive a monthly check of $1,700 for life. Note: Round your answer to 2 decimal places. c. Person C, age 63, made contributions of $18,000 to the pension plan and will receive monthly payments of $1,300 over her life and the life of her 66-year-old husband. Note: Round your answer to 2 decimal places. d. Person D, age 58, made contributions of $31,000 to the pension plan. He will receive quarterly payments of $4,300 over his life and the life of his 60-year-old wife. Note: Round your answer to 2 decimal places. a. Tax free portion b. Tax free portion c. Tax free…
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Mr. Jones made a contribution to his self-employed retirement plan (SEP IRA plan). This contribution is: O A. Not deductible. A deduction to arrive at adjusted gross income. A deduction from adjusted gross income. D. A deduction from adjusted gross income, subject to a 2 percent AGI floor. B. O C.

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