Questions from General Taxation

Q: Regarding a Coverdell Education Savings Account: a. Distributions

Regarding a Coverdell Education Savings Account: a. Distributions are tax-free to the beneficiary if they are used for his or her qualified education expenses. b. Qualified education expenses includ...

Q: Julio is 62 and single. He purchased a single life annuity

Julio is 62 and single. He purchased a single life annuity contract that will pay him $1,000 a month for life with a minimum payout of 10 years. His expected return on the contract: a. Is $120,000....

Q: June, age 76, and Augustus, age 78, are

June, age 76, and Augustus, age 78, are married. They purchased a single life annuity contract that will pay $1,500 per month for the life of June. The expected return on the contract: a. Is $190,8...

Q: Sanjay purchased a single life annuity contract for $200,000

Sanjay purchased a single life annuity contract for $200,000. The contract will pay $15,000 per year beginning in 2017 for the remainder of his life and has an expected return of $330,000. What amou...

Q: A participant in a Keogh plan over the age of 50 may

A participant in a Keogh plan over the age of 50 may contribute up to what amount in 2017? a. $6,500. b. $24,000. c. The lower of $54,000 or 25% of earned income from self-employment. d. The greater...

Q: A qualified pension plan provides significant tax benefits to both employers and

A qualified pension plan provides significant tax benefits to both employers and employees including: a. Employer contributions are not treated as compensation to the employee. b. Earnings from the i...

Q: To obtain and retain qualified status, a pension or profit-

To obtain and retain qualified status, a pension or profit-sharing plan must not discriminate in favor of highly compensated employees, who include: a. Employees who own more than 5% of the corporati...

Q: A participant in a 401(k) plan under the age

A participant in a 401(k) plan under the age of 50 may contribute up to what amount in 2017? a. $5,500. b. $12,500. c. $18,000. d. $54,000.

Q: Thomas is a self-employed plumber under the age of 50

Thomas is a self-employed plumber under the age of 50. His earnings from self- employment, before the Keogh deduction but after deducting half of the self-employment tax, are $80,000. What is his de...

Q: Which of the following is true regarding SEPs? a

Which of the following is true regarding SEPs? a. The plan cannot discriminate in favor of highly compensated employees. b. Deductible contributions cannot exceed the lower of 15% of the employee’s c...