Questions from Individual Taxation

Q: George (age 42 at year-end) has been contributing

George (age 42 at year-end) has been contributing to a traditional IRA for years (all deductible contributions) and his IRA is now worth $25,000. He is planning on transferring (or rolling over) the e...

Q: Jimmer has contributed $15,000 to his Roth IRA and

Jimmer has contributed $15,000 to his Roth IRA and the balance in the account is $18,000. In the current year, Jimmer withdrew $17,000 from the Roth IRA to pay for a new car. If Jimmer’s marginal ordi...

Q: Brady Corporation has a profit sharing plan that allocates 10 percent of

Brady Corporation has a profit sharing plan that allocates 10 percent of all after-tax income to employees. The profit sharing is allocated to individual employees based on relative employee compensat...

Q: John is trying to decide whether to contribute to a Roth IRA

John is trying to decide whether to contribute to a Roth IRA or traditional IRA. He plans on making a $5,000 contribution to whichever plan he decides to fund. He currently pays tax at a 30 percent ma...

Q: Sherry, who is 52 years of age, opened a Roth

Sherry, who is 52 years of age, opened a Roth IRA three years ago. She has contributed a total of $12,000 to a Roth IRA ($4,000 a year). The current value of the Roth IRA is $16,300. In the current ye...

Q: Seven years ago, Halle (currently age 41) contributed $

Seven years ago, Halle (currently age 41) contributed $4,000 to a Roth IRA account. The current value of the Roth IRA is $9,000. In the current, year Halle withdraws $8,000 of the account balance to u...

Q: Yuki (age 45 at year-end) has been contributing

Yuki (age 45 at year-end) has been contributing to a traditional IRA for years (all deductible contributions) and her IRA is now worth $50,000. She is trying to decide whether she should roll over her...

Q: Sarah was contemplating making a contribution to her traditional individual retirement account

Sarah was contemplating making a contribution to her traditional individual retirement account for 2016. She determined that she would contribute $5,500 to her IRA and she deducted $5,500 for the cont...

Q: Elvira is a self-employed taxpayer who turns 42 years old

Elvira is a self-employed taxpayer who turns 42 years old at the end of the year (2016). In 2016, her net Schedule C income was $120,000. This was her only source of income. This year, Elvira is consi...

Q: Hope is a self-employed taxpayer who turns 54 years old

Hope is a self-employed taxpayer who turns 54 years old at the end of the year (2016). In 2016, her net Schedule C income was $120,000. This was her only source of income. This year, Hope is consideri...