Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Charlotte 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 disallowed portion of her deductible IRA contribution in 2014?

Accepted Answer

A)  $1,000. 
B)  $1,100. 
C)  $1,300. 
D)  $5,200. 
A)  $1,000. 
B)  $1,100. 
C)  $1,300. 
D)  $5,200.

Question 3

What is the maximum deductible contribution that can be made to one or more deductible IRAs in each of the following instances?
a.A single person,age 51,who is an active participant in an employer-sponsored retirement plan with AGI of $37,000.
b.A single person,age 59,who is an active participant in an employer-sponsored retirement plan with AGI of $66,000.
c.A single person,age 26,who is an active participant in an employer-sponsored retirement plan with AGI of $62,000.

Accepted Answer

a.$6,500 b

Question 4

For 2014,the maximum annual contribution to a Simplified Employee Pension (SEP)plan for an employee under the age of 50 is:

Accepted Answer

A)  $5,000 
B)  $12,000 
C)  $17,500 
D)  $52,000 
A)  $5,000 
B)  $12,000 
C)  $17,500 
D)  $52,000

Question 5

Contributions to a Coverdell Education Savings Account are not subject to AGI phaseout rules.

Accepted Answer

A) True 
 B)False

Question 6

In the case of defined-contribution plans,in 2014 what are the maximum contribution limits by an employee under the age of 50 to a qualified pension plan,a 401(k)plan,a Keogh plan,SEP,and SIMPLE plan?

Accepted Answer

Qualified pension plan = the lesser of $

Question 7

Hamden is entitled to receive monthly payments of $6,000 over his life from his employer's qualified pension plan.The payments begin January 1,2014.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 2014?

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 8

Quentin and Janelle would like to establish a Coverdell Education Savings Account (CESA)for their daughter,age 5,and their nephew (the son of Quentin's brother),age 8.Their AGI is $145,000.Quentin's brother has already contributed $1,500 to a CESA for his son.
a.What is the maximum amount Quentin and Janelle can contribute to a CESA for their daughter and their nephew?
b.If their AGI were $208,000,what is the maximum amount they can contribute to a CESA for their daughter and their nephew?

Accepted Answer

a.Quentin and Janelle can contribute $2,

Question 9

A stream of payments can be called an annuity.

Accepted Answer

A) True 
 B)False

Question 10

Escobar and Rose are both age 36 and file a joint return.Neither is covered under an employer plan.Escobar earned $121,000 of compensation in 2014.Rose worked part-time and earned $1,200.What is the maximum deductible IRA contribution they can make in 2014?

Accepted Answer

A)  $0. 
B)  $5,500. 
C)  $6,700. 
D)  $11,000. 
A)  $0. 
B)  $5,500. 
C)  $6,700. 
D)  $11,000.

Question 11

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 12

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

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Employees age 50 or over can contribute an additional ________ per year to a 401(k)plan.

Accepted Answer

A)  $17,500 
B)  $6,500 
C)  $5,500 
D)  $5,000 
A)  $17,500 
B)  $6,500 
C)  $5,500 
D)  $5,000

Question 15

Felix is age 74 and his wife is age 73.He purchased a single life annuity contract that will pay him $80,000 per year for life.The expected return on the contract is

Accepted Answer

A)  $1,904,000. 
B)  $1,128,000. 
C)  $1,112,000. 
D)  $1,056,000. 
A)  $1,904,000. 
B)  $1,128,000. 
C)  $1,112,000. 
D)  $1,056,000.

Question 16

Which of the following statements is incorrect?

Accepted Answer

A)  Tax-deferred plans have an accumulation period and a distribution period. 
B)  Normally,if a retirement plan is funded with dollars that have already been taxed,the distributions will be taxed. 
C)  During the accumulation period of a qualified retirement plan,no taxes are due on the earnings from the plan investments. 
D)  Contributions to retirement plans are often limited in amount. 
A)  Tax-deferred plans have an accumulation period and a distribution period. 
B)  Normally,if a retirement plan is funded with dollars that have already been taxed,the distributions will be taxed. 
C)  During the accumulation period of a qualified retirement plan,no taxes are due on the earnings from the plan investments. 
D)  Contributions to retirement plans are often limited in amount.

Question 17

If an individual (or spouse)is an active participant in an employer-sponsored retirement plan,he or she cannot make a deductible IRA contribution.

Accepted Answer

A) True 
 B)False

Question 18

Individuals who make contributions to a Coverdell Education Savings Account must have AGI of $175,000 or less.

Accepted Answer

A) True 
 B)False

Question 19

Contributions to a Coverdell Education Savings Account can only be made by the parents or grandparents of a child under the age of 18.

Accepted Answer

A) True 
 B)False

Question 20

Under what circumstances might an individual want to establish an annuity contract in retirement?

Accepted Answer

When a person retires,he or she may be t

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

Charlotte 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 disallowed portion of her deductible IRA contribution in 2014?

For 2014,the maximum annual contribution to a Simplified Employee Pension (SEP)plan for an employee under the age of 50 is:

Contributions to a Coverdell Education Savings Account are not subject to AGI phaseout rules.

In the case of defined-contribution plans,in 2014 what are the maximum contribution limits by an employee under the age of 50 to a qualified pension plan,a 401(k)plan,a Keogh plan,SEP,and SIMPLE plan?

A stream of payments can be called an annuity.

Escobar and Rose are both age 36 and file a joint return.Neither is covered under an employer plan.Escobar earned $121,000 of compensation in 2014.Rose worked part-time and earned $1,200.What is the maximum deductible IRA contribution they can make in 2014?

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

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

Employees age 50 or over can contribute an additional ________ per year to a 401(k)plan.

Felix is age 74 and his wife is age 73.He purchased a single life annuity contract that will pay him $80,000 per year for life.The expected return on the contract is

Which of the following statements is incorrect?

If an individual (or spouse)is an active participant in an employer-sponsored retirement plan,he or she cannot make a deductible IRA contribution.

Individuals who make contributions to a Coverdell Education Savings Account must have AGI of $175,000 or less.

Contributions to a Coverdell Education Savings Account can only be made by the parents or grandparents of a child under the age of 18.

Under what circumstances might an individual want to establish an annuity contract in retirement?

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

Capital Gains and Other Sales of Property

Rental Property, Royalties, and Income From Flow-Through Entities

Tax Credits

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

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

Charlotte 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 disallowed portion of her deductible IRA contribution in 2014?

For 2014,the maximum annual contribution to a Simplified Employee Pension (SEP)plan for an employee under the age of 50 is:

Contributions to a Coverdell Education Savings Account are not subject to AGI phaseout rules.

In the case of defined-contribution plans,in 2014 what are the maximum contribution limits by an employee under the age of 50 to a qualified pension plan,a 401(k)plan,a Keogh plan,SEP,and SIMPLE plan?

A stream of payments can be called an annuity.

Escobar and Rose are both age 36 and file a joint return.Neither is covered under an employer plan.Escobar earned $121,000 of compensation in 2014.Rose worked part-time and earned $1,200.What is the maximum deductible IRA contribution they can make in 2014?

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

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

Employees age 50 or over can contribute an additional ________ per year to a 401(k)plan.

Felix is age 74 and his wife is age 73.He purchased a single life annuity contract that will pay him $80,000 per year for life.The expected return on the contract is

Which of the following statements is incorrect?

If an individual (or spouse)is an active participant in an employer-sponsored retirement plan,he or she cannot make a deductible IRA contribution.

Individuals who make contributions to a Coverdell Education Savings Account must have AGI of $175,000 or less.

Contributions to a Coverdell Education Savings Account can only be made by the parents or grandparents of a child under the age of 18.

Under what circumstances might an individual want to establish an annuity contract in retirement?

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

Capital Gains and Other Sales of Property

Rental Property, Royalties, and Income From Flow-Through Entities

Tax Credits

Payroll Taxes

Special Property Transactions

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

Partnership Taxation

Corporate Taxation

Filters