Questions from Federal Taxation

Q: What is the spread with respect to an incentive stock option?

What is the spread with respect to an incentive stock option? How is treated under the tax law?

Q: Indicate whether the following statements apply to a pension plan (P

Indicate whether the following statements apply to a pension plan (P), a profit sharing plan (PS), both (B) or neither (N). a. Forfeited amounts can be used to reduce future contributions by the emplo...

Q: Penny plans to retire in 2018 at age 70. Identify any

Penny plans to retire in 2018 at age 70. Identify any issues that Penny faces with respect to distributions from her qualified retirement plan.

Q: Harvey Pehrson, who is age 71, is going to receive

Harvey Pehrson, who is age 71, is going to receive a lump-sum distribution from a qualified plan in 2018. He has asked you to provide him with a Communications description of the alternatives availabl...

Q: Which of the following would be considered a tax benefit or advantage

Which of the following would be considered a tax benefit or advantage of a qualified retirement plan? a. Certain lump-sum distributions may be subject to capital gain treatment. b. Employer contributi...

Q: Donna is retiring and wants you to explain her alternatives for receiving

Donna is retiring and wants you to explain her alternatives for receiving payments from her qualified retirement plan.

Q: Jasmin purchased 100 shares of Pinkstey Corporation (publicly traded company)

Jasmin purchased 100 shares of Pinkstey Corporation (publicly traded company) on January 1 of year 1 for $5,000. The FMV of the shares at the end of year 1 was $6,000. On January 1 of year 4, Pinkstey...

Q: Should a 31-year-old self-employed single woman

Should a 31-year-old self-employed single woman establish a traditional deductible IRA, a traditional nondeductible IRA, or a Roth IRA? She has two children, ages 10 and 8.

Q: Joey, who is single, is not covered by another qualified

Joey, who is single, is not covered by another qualified plan and earns $122,000 at his job in 2018. How much can he contribute to a traditional IRA or to a Roth IRA in 2018?

Q: Scott Henry calls you and asks about a savings incentive match plan

Scott Henry calls you and asks about a savings incentive match plan for employees (SIMPLE). Prepare a memo for the tax files about your response.