Question 1

Retirement accounts include traditional IRAs,Roth IRAs,Keoghs,and Coverdell Education Savings Accounts.

Accepted Answer

A) True 
 B)False

Question 2

For 2017,the maximum annual contribution to a Simplified Employee Pension (SEP)plan for an employee under the age of 50 is:

Accepted Answer

A) $5,500 
B) $12,500 
C) $18,000 
D) $54,000 
A) $5,500 
B) $12,500 
C) $18,000 
D) $54,000

Question 3

Annually,up to $2,000 per beneficiary can be contributed to a Coverdell Education Savings Account.

Accepted Answer

A) True 
 B)False

Question 4

Hamden is entitled to receive monthly payments of $6,000 over his life from his employer's qualified pension plan.The payments begin January 1,2017.He contributed $286,000 to the plan prior to his retirement at age 62.Using the simplified method,what amount of the payments will be excluded from Hamden's taxable income for 2017?

Accepted Answer

A) $0. 
B) $13,200. 
C) $58,800. 
D) $72,000. 
A) $0. 
B) $13,200. 
C) $58,800. 
D) $72,000.

Question 5

What is a good rule of thumb you should use when thinking about the taxability of retirement plan distributions?

Accepted Answer

A good rule of thumb is: if the plan is

Question 6

Distributions from a qualified pension plan may be fully taxable,nontaxable,or a combination of both.

Accepted Answer

A) True 
 B)False

Question 7

With a Roth IRA,contributions are deductible,the account grows tax-free,and distributions are not taxable.

Accepted Answer

A) True 
 B)False

Question 8

Maurice is age 44,single,and reported AGI of $68,000 in tax year 2017.He is an active participant in his employer's pension plan.What is the maximum deductible IRA contribution he can make in 2017?

Accepted Answer

A) $0. 
B) $2,200. 
C) $3,300. 
D) $5,500. 
A) $0. 
B) $2,200. 
C) $3,300. 
D) $5,500.

Question 9

Retirement plans can be categorized into employer-sponsored plans and individual-based plans.What is the distinction? Give examples of plans in both categories.

Accepted Answer

Employer-sponsored plans are established

Question 10

Regarding withdrawals from a Roth IRA:

Accepted Answer

A) There are minimum withdrawal requirements for a Roth IRA. 
B) Roth IRA withdrawals are taxable if made after the five-tax-year period beginning with the first tax year in which a Roth contribution was made. 
C) Roth withdrawals are deemed to first come from contributions followed by earnings. 
D) Withdrawals that fail to meet the five-year holding period requirement are not taxable to the extent they do not exceed earnings. 
A) There are minimum withdrawal requirements for a Roth IRA. 
B) Roth IRA withdrawals are taxable if made after the five-tax-year period beginning with the first tax year in which a Roth contribution was made. 
C) Roth withdrawals are deemed to first come from contributions followed by earnings. 
D) Withdrawals that fail to meet the five-year holding period requirement are not taxable to the extent they do not exceed earnings.

Question 11

SIMPLE plans are not subject to the nondiscrimination rules for other qualified plans.

Accepted Answer

A) True 
 B)False

Question 12

Len is entitled to receive monthly payments of $1,500 over his life from his employer's qualified pension plan.The payments begin January 1,2017.He contributed $71,500 to the plan prior to his retirement at age 62.Using the simplified method,how much of the payments will be included in Len's taxable income for 2017?

Accepted Answer

A) $0. 
B) $3,300. 
C) $14,700. 
D) $18,000. 
A) $0. 
B) $3,300. 
C) $14,700. 
D) $18,000.

Question 13

Paulette is age 32,single,and reported AGI of $68,000 in tax year 2017.She is an active participant in her employer's pension plan.What amount of deductible IRA contribution is disallowed in 2017?

Accepted Answer

A) $0. 
B) $2,200. 
C) $3,300. 
D) $5,500. 
A) $0. 
B) $2,200. 
C) $3,300. 
D) $5,500.

Question 14

SIMPLE and SEP plans are subject to the same nondiscrimination rules that apply to other retirement plans.

Accepted Answer

A) True 
 B)False

Question 15

Distributions from a retirement plan are not subject to a 10% additional tax in each of the following instances except when

Accepted Answer

A) The distribution is made to pay an IRS tax levy on the plan. 
B) The distribution is paid to an employee to be used to pay health insurance premiums. 
C) The distribution is used to pay for medical expenses above the 10% AGI threshold. 
D) The distribution is made to an employee or retiree on or after age 59½. 
A) The distribution is made to pay an IRS tax levy on the plan. 
B) The distribution is paid to an employee to be used to pay health insurance premiums. 
C) The distribution is used to pay for medical expenses above the 10% AGI threshold. 
D) The distribution is made to an employee or retiree on or after age 59½.

Question 16

There are two types of IRAs: a traditional IRA and a Roth IRA.

Accepted Answer

A) True 
 B)False

Question 17

Shauntae is 75 years old.He purchased a single life annuity contract that will pay him $3,000 per month for 10 years.The expected return under the contract is:

Accepted Answer

A) $30,000. 
B) $360,000. 
C) $450,000. 
D) $482,400. 
A) $30,000. 
B) $360,000. 
C) $450,000. 
D) $482,400.

Question 18

If the proceeds of a pension plan are being distributed and the original beneficiary dies:

Accepted Answer

A) The person who inherits the plan assets can elect to be treated as the original beneficiary if that person is the spouse of the original beneficiary. 
B) The person who inherits the plan assets can elect to be treated as the original beneficiary if that person is unrelated to the original beneficiary. 
C) The person who inherits the plan assets will receive the remaining plan assets tax-free. 
D) The balance of the pension plan assets must be distributed in the year of death. 
A) The person who inherits the plan assets can elect to be treated as the original beneficiary if that person is the spouse of the original beneficiary. 
B) The person who inherits the plan assets can elect to be treated as the original beneficiary if that person is unrelated to the original beneficiary. 
C) The person who inherits the plan assets will receive the remaining plan assets tax-free. 
D) The balance of the pension plan assets must be distributed in the year of death.

Question 19

A stream of payments can be called an annuity.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following statements is incorrect?

Accepted Answer

A) A SIMPLE plan is an employer-sponsored retirement plan. 
B) A payment to a beneficiary from a pension plan is called a distribution. 
C) Tax-deferred plans can be created for purposes other than retirement. 
D) Retirement plans are always funded with contributions that have not been taxed,so the withdrawals are taxed. 
A) A SIMPLE plan is an employer-sponsored retirement plan. 
B) A payment to a beneficiary from a pension plan is called a distribution. 
C) Tax-deferred plans can be created for purposes other than retirement. 
D) Retirement plans are always funded with contributions that have not been taxed,so the withdrawals are taxed.

Retirement accounts include traditional IRAs,Roth IRAs,Keoghs,and Coverdell Education Savings Accounts.

For 2017,the maximum annual contribution to a Simplified Employee Pension (SEP)plan for an employee under the age of 50 is:

Annually,up to $2,000 per beneficiary can be contributed to a Coverdell Education Savings Account.

What is a good rule of thumb you should use when thinking about the taxability of retirement plan distributions?

Distributions from a qualified pension plan may be fully taxable,nontaxable,or a combination of both.

With a Roth IRA,contributions are deductible,the account grows tax-free,and distributions are not taxable.

Maurice is age 44,single,and reported AGI of $68,000 in tax year 2017.He is an active participant in his employer's pension plan.What is the maximum deductible IRA contribution he can make in 2017?

Retirement plans can be categorized into employer-sponsored plans and individual-based plans.What is the distinction? Give examples of plans in both categories.

Regarding withdrawals from a Roth IRA:

SIMPLE plans are not subject to the nondiscrimination rules for other qualified plans.

Paulette is age 32,single,and reported AGI of $68,000 in tax year 2017.She is an active participant in her employer's pension plan.What amount of deductible IRA contribution is disallowed in 2017?

SIMPLE and SEP plans are subject to the same nondiscrimination rules that apply to other retirement plans.

Distributions from a retirement plan are not subject to a 10% additional tax in each of the following instances except when

There are two types of IRAs: a traditional IRA and a Roth IRA.

Shauntae is 75 years old.He purchased a single life annuity contract that will pay him $3,000 per month for 10 years.The expected return under the contract is:

If the proceeds of a pension plan are being distributed and the original beneficiary dies:

A stream of payments can be called an annuity.

Which of the following statements is incorrect?

Introduction to Taxation, the Income Tax Formula, and Form 1040EZ

Expanded Tax Formula, forms 1040A and 1040, and Basic Concepts

Gross Income: Inclusions and Exclusions

Adjustments for Adjusted Gross Income

Itemized Deductions

Self-Employed Business Income Line 12 of Form 1040 and Schedule C

Capital Gains and Other Sales of Property Schedule D and Form 4797

Rental Property, Royalties, and Income From Flow- Through Entities Line 17, form 1040, and Schedule E

Tax Credits Form 1040,lines 48 Through 54 and Lines 66A Through 73

Payroll Taxes

Special Property Transactions

At-Riskpassive Activity Loss Rules and the Individual Alternative Minimum Tax

Partnership Taxation

Corporate Taxation

Filters

Exam 11: Retirement and Other Tax-Deferred Plans and Annuities

Retirement accounts include traditional IRAs,Roth IRAs,Keoghs,and Coverdell Education Savings Accounts.

For 2017,the maximum annual contribution to a Simplified Employee Pension (SEP)plan for an employee under the age of 50 is:

Annually,up to $2,000 per beneficiary can be contributed to a Coverdell Education Savings Account.

What is a good rule of thumb you should use when thinking about the taxability of retirement plan distributions?

Distributions from a qualified pension plan may be fully taxable,nontaxable,or a combination of both.

With a Roth IRA,contributions are deductible,the account grows tax-free,and distributions are not taxable.

Maurice is age 44,single,and reported AGI of $68,000 in tax year 2017.He is an active participant in his employer's pension plan.What is the maximum deductible IRA contribution he can make in 2017?

Retirement plans can be categorized into employer-sponsored plans and individual-based plans.What is the distinction? Give examples of plans in both categories.

Regarding withdrawals from a Roth IRA:

SIMPLE plans are not subject to the nondiscrimination rules for other qualified plans.

Paulette is age 32,single,and reported AGI of $68,000 in tax year 2017.She is an active participant in her employer's pension plan.What amount of deductible IRA contribution is disallowed in 2017?

SIMPLE and SEP plans are subject to the same nondiscrimination rules that apply to other retirement plans.

Distributions from a retirement plan are not subject to a 10% additional tax in each of the following instances except when

There are two types of IRAs: a traditional IRA and a Roth IRA.

Shauntae is 75 years old.He purchased a single life annuity contract that will pay him $3,000 per month for 10 years.The expected return under the contract is:

If the proceeds of a pension plan are being distributed and the original beneficiary dies:

A stream of payments can be called an annuity.

Which of the following statements is incorrect?

Introduction to Taxation, the Income Tax Formula, and Form 1040EZ

Expanded Tax Formula, forms 1040A and 1040, and Basic Concepts

Gross Income: Inclusions and Exclusions

Adjustments for Adjusted Gross Income

Itemized Deductions

Self-Employed Business Income Line 12 of Form 1040 and Schedule C

Capital Gains and Other Sales of Property Schedule D and Form 4797

Rental Property, Royalties, and Income From Flow- Through Entities Line 17, form 1040, and Schedule E

Tax Credits Form 1040,lines 48 Through 54 and Lines 66A Through 73

Payroll Taxes

Special Property Transactions

At-Riskpassive Activity Loss Rules and the Individual Alternative Minimum Tax

Partnership Taxation

Corporate Taxation

Filters