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

If a taxpayer funded some contributions to a qualified pension plan with previously-taxed dollars,then some of the distributions from that plan during retirement will be nontaxable.

Chandelle and Treymane are married and have combined AGI of $215,000.They would like to contribute to a Coverdell Education Savings Account for their grandson.What is the maximum contribution they can make in 2016?

To calculate the taxable amount of an annuity payment,the taxpayer must determine the expected return under the contract.

Paulette is age 32,single,and reported AGI of $67,000 in tax year 2016.She is an active participant in her employer's pension plan.What amount of deductible IRA contribution is disallowed in 2016?

Kasey is 72 years old.She purchased a single life annuity contract that will pay her $10,000 per year for 15 years.The expected return under the contract is:

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

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

In the case of defined-contribution plans,in 2016 what are the maximum contribution limits by an employee under the age of 50 to a qualified pension plan,a 401k)plan,a Keogh plan,SEP,and SIMPLE plan?

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

Hyman is age 34,single,and has AGI of $130,000.He would like to contribute to a Coverdell Education Savings Account CESA)for his niece,Danielle.Danielle's father has already contributed $500 to a CESA in 2016.What is the maximum CESA contribution Hyman can make for Danielle in 2016?

Individuals who are active participants in an employer-sponsored retirement plan may make a deductible contribution to a traditional IRA in certain circumstances.

Regarding withdrawals from a Roth IRA:

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

Randy is entitled to receive monthly payments of $2,500 over his life from his employer's qualified pension plan or he can take $2,300 over his life and the life of his wife.The payments begin May 1,2016.Randy contributed $106,000 to the plan prior to his retirement.Randy is 67 and his wife is 65.Using the simplified method,how much of the payments will be included in Randy's income for 2016 in each of the following independent situations? a.Randy chooses to take payments of $2,500 over his life. b.Randy chooses to take payments of $2,300 over his life and the life of his wife.

What are the tax consequences)related to a qualified pension plan?

Pension plans must meet complex rules to retain their tax-advantaged status.These rules include all of the following except:

Gwen is age 51,married,and reported AGI of $101,000 in tax year 2016.She is an active participant in her employer's pension plan.What amount of deductible IRA contribution is disallowed in 2016?

For all annuity contracts,to determine the expected return,use the IRS tables for either a single life or a dual life annuity.

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

Maurice is age 44,single,and reported AGI of $69,000 in tax year 2016.He is an active participant in his employer's pension plan.What is the maximum deductible IRA contribution he can make in 2016?