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

Heather,age 67,retired in 2014.During the year she received distributions of $14,000 from her IRA.She made nondeductible contributions of $40,000 to the IRA in prior years and has never received a nontaxable distribution.As of December 31,2014,the value of her IRA was $250,000.Calculate the taxable portion of Heather's distribution and her tax basis in the IRA after the distribution that she will carry forward to 2015.

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

Keisha established a Roth IRA in 2004.She contributes the maximum amount each year,for the next 20 years and retires when she is 65.At the time of her retirement,the account has a balance of $248,000,which is made up of $100,000 in contributions and the balance in earnings.What amount can Keisha withdraw tax-free from the Roth IRA each year during her retirement?

DJ is age 27,single,and reported AGI of $68,000 in tax year 2014.He is an active participant in his employer's pension plan.What is the maximum deductible IRA contribution he can make in 2014?

Which of the following statements is correct?

Paolo is age 77.He paid $240,000 for a single life annuity contract that will pay him $43,200 per year for life.The tax-free amount of the first $43,200 payment is

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 2014,a 48-year-old participant in a 401(k)plan may contribute a maximum of:

A distribution from a retirement plan is conceptually similar to a withdrawal from a savings account.

Pierre retired in 2014 at age 62.During the year he received distributions of $27,000 from his IRA.He made nondeductible contributions of $60,000 to the IRA in prior years and has never received a nontaxable distribution.As of December 31,2014,the value of his IRA was $450,000.Calculate the taxable portion of Pierre's distribution.

Which of the following is not an employer-sponsored retirement plan?

Puri is a self-employed Spanish teacher.Her earnings from self-employment before the Keogh deduction but after deducting half of the self-employment tax are $120,000.What is her deductible Keogh contribution for 2014?

Harriett is age 52,married,and reported AGI of $100,000 in tax year 2014.She is an active participant in her employer's pension plan.What is the maximum deductible IRA contribution she can make for her own account in 2014?

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

Damian is age 77.He paid $600,000 for a single life annuity contract that will pay him $72,000 per year for life.The tax-free amount of the first $72,000 payment is

All of the following are employer-sponsored plans except:

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.

Max retired in 2014 at age 62.During the year he received distributions of $9,000 from his IRA.He made nondeductible contributions of $20,000 to the IRA in prior years and has never received a nontaxable distribution.As of December 31,2014,the value of his IRA was $150,000.Calculate the taxable portion of Max's distribution.

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

Which of the following statements regarding Individual Retirement Accounts (IRA)is incorrect?