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

Augustus is single and age 51.He had AGI of $41,000 in tax year 2017 and is an active participant in his employer's pension plan.What is the maximum deductible IRA contribution he can make in 2017?

(Multiple Choice)

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Question 41

If a taxpayer pays for an annuity contract with after-tax dollars,all payments received under the contract will be tax-free until the original cost is recovered.

(True/False)

4.9/5

(79)

Question 42

Roth IRA withdrawals are deemed to first come from contributions followed by earnings.

(True/False)

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Question 43

If only one spouse is employed,and that spouse is not covered under an employer-sponsored retirement plan,then the non-working spouse can make a deductible contribution to his or her own IRA.

(True/False)

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Question 44

Contributions to a qualified pension plan can be deducted immediately by an employer.

(True/False)

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Question 45

At the end of 2015,Erin was 74 years old and her traditional IRA had a balance of $300,000.She properly withdrew $12,605 from her IRA in 2016,which was the first year she took a withdrawal.In 2016,her IRA assets earned $37,500.What amount must Erin take as a distribution from her IRA in 2017?

(Multiple Choice)

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Question 46

In 2017,a 48-year-old participant in a 401(k)plan may contribute a maximum of:

(Multiple Choice)

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Question 47

Under a qualified profit-sharing plan,contributions must be made at least annually whether or not the employer has positive net income for the year.

(True/False)

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Question 48

The expected return on an annuity contract that will last for a specified amount of time is determined with reference to the life expectancy tables published by the IRS.

(True/False)

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Question 49

What are some tax consequences related to a qualified pension plan?

(Multiple Choice)

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Question 50

The proportion of an annuity payment from a qualified pension plan that is determined to have come from employee contributions is taxed at ordinary income rates.

(True/False)

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(68)

Question 51

A participant has an adjusted basis of zero in any nondeductible contributions to a traditional IRA.

(True/False)

4.9/5

(83)

Question 52

Employers with 200 or fewer employees who do not have a qualified pension or profit-sharing plan can establish a SIMPLE retirement plan for their employees.

(True/False)

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(75)

Question 53

Carl is 60 years old.On January 1,2017,Carl purchased a single life annuity for $70,000.The annuity contract provides Carl with payments of $600 per month for the rest of his life.Payments under the contract began January 1,2017.How much of the annuity payments are included in income for 2017? (Round the exclusion ratio to four decimal places. )

(Essay)

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Question 54

In 2017,a 52-year-old participant in a 401(k)plan may contribute a maximum of:

(Multiple Choice)

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(74)

Question 55

Generally,tax-deferred retirement plans are not required to make distributions to beneficiaries.

(True/False)

4.8/5

(76)

Question 56

Annual contributions to a Keogh plan cannot exceed the greater of $54,000 or 100% of compensation.

(True/False)

4.8/5

(79)

Question 57

DJ is age 27,single,and reported AGI of $70,000 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?

(Multiple Choice)

5.0/5

(73)

Question 58

If a retirement plan is funded with dollars that have not been taxed,the distributions will not be taxed.

(True/False)

4.7/5

(80)

Question 59

Regarding a full or partial rollover of assets from one retirement plan to another retirement plan:

(Multiple Choice)

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Question 60

Showing 41 - 60 of 125

Augustus is single and age 51.He had AGI of $41,000 in tax year 2017 and is an active participant in his employer's pension plan.What is the maximum deductible IRA contribution he can make in 2017?

If a taxpayer pays for an annuity contract with after-tax dollars,all payments received under the contract will be tax-free until the original cost is recovered.

Roth IRA withdrawals are deemed to first come from contributions followed by earnings.

If only one spouse is employed,and that spouse is not covered under an employer-sponsored retirement plan,then the non-working spouse can make a deductible contribution to his or her own IRA.

Contributions to a qualified pension plan can be deducted immediately by an employer.

At the end of 2015,Erin was 74 years old and her traditional IRA had a balance of $300,000.She properly withdrew $12,605 from her IRA in 2016,which was the first year she took a withdrawal.In 2016,her IRA assets earned $37,500.What amount must Erin take as a distribution from her IRA in 2017?

In 2017,a 48-year-old participant in a 401(k)plan may contribute a maximum of:

Under a qualified profit-sharing plan,contributions must be made at least annually whether or not the employer has positive net income for the year.

The expected return on an annuity contract that will last for a specified amount of time is determined with reference to the life expectancy tables published by the IRS.

What are some tax consequences related to a qualified pension plan?

The proportion of an annuity payment from a qualified pension plan that is determined to have come from employee contributions is taxed at ordinary income rates.

A participant has an adjusted basis of zero in any nondeductible contributions to a traditional IRA.

Employers with 200 or fewer employees who do not have a qualified pension or profit-sharing plan can establish a SIMPLE retirement plan for their employees.

In 2017,a 52-year-old participant in a 401(k)plan may contribute a maximum of:

Generally,tax-deferred retirement plans are not required to make distributions to beneficiaries.

Annual contributions to a Keogh plan cannot exceed the greater of $54,000 or 100% of compensation.

DJ is age 27,single,and reported AGI of $70,000 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?

If a retirement plan is funded with dollars that have not been taxed,the distributions will not be taxed.

Regarding a full or partial rollover of assets from one retirement plan to another retirement plan:

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

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