W04 Study & Quiz_ IRA_ Personal Finance

pdf

School

Brigham Young University, Idaho *

*We aren’t endorsed by this school

Course

433

Subject

Finance

Date

May 30, 2024

Type

pdf

Pages

8

Uploaded by ConstableAlpacaMaster973

Report
W04 Study & Quiz: IRA Due May 16 at 11:59pm Points 20 Questions 20 Available after May 4 at 12am Time Limit None Instructions Task: Study these materials about IRAs and then take a quiz . Purpose: Understand the definition and power of IRAs. Instructions 1. Complete the readings: Traditional IRA (http://www.investopedia.com/university/retirementplans/ira/) (Five sections) ROTH IRA (http://www.investopedia.com/university/retirementplans/rothira/) (Five sections) Roth 401(k) Fact Sheet (https://byui.instructure.com/courses/294268/pages/roth-401-k-fact-sheet) SIMPLE IRA (http://www.investopedia.com/university/retirementplans/simpleira/) (Five sections) SEP IRA (http://www.investopedia.com/university/retirementplans/sepira/) (Five sections) Coverdell ESA (http://www.investopedia.com/university/retirementplans/esa/) (Four sections) 529 College Savings Plan (http://www.investopedia.com/university/retirementplans/529plan/) (Six sections) IRA Fact Sheet (https://byui.instructure.com/courses/294268/files/128080304?wrap=1) (https://byui.instructure.com/courses/294268/files/128080304/download?download_frd=1) Millionaire Next Door: The Surprising Secrets of America's Wealthy (https://ebookcentral.proquest.com/lib/byui/detail.action?docID=867833) NOTE : Taking notes during this reading assignment will help you as you create a summary of concepts at the end of the semester. 2. View the video or PowerPoint: IRA and other forms of tax-advantaged savings accounts (https://video.byui.edu/media/B433_L04_IRA/0_lbbs2o23) (11:14 mins, "IRA and other forms of Tax-Advantage Savings Accounts" Transcript (https://docs.google.com/document/d/e/2PACX-1vTLHI-5L- 9vHDjuvwWLCeCZU8KKGWrB20HLE8orusCyPR2woihlUnt0j5fP4G3N33IkDN3JnLjj_LRN/pub) ) 5/15/24, 6:45 PM W04 Study & Quiz: IRA: Personal Finance https://byui.instructure.com/courses/294268/quizzes/4591719 1/8
Attempt History Attempt Time Score LATEST Attempt 1 22 minutes 14 out of 20 Correct answers will be available on May 17 at 12am. Score for this quiz: 14 out of 20 Submitted May 15 at 6:45pm This attempt took 22 minutes. Question 1 1 / 1 pts taxable income tax-free income tax-deferred income earned income 0:00 / 9:03 1x 1x (09:03, "IRA and other forms of tax advantaged Savings Accounts (2)" Transcript (https://docs.google.com/document/d/e/2PACX-1vQK1Zr0OfiRnCZxJdiHagYBg4f1hlUdjBbtZuftjFoh0- gQk9x0OdEcPsR3Xl4FC9c_qEmYpT1QGI6w/pub) ) IRA and other forms of tax-advantaged savings accounts (ppt) (https://byui.instructure.com/courses/294268/files/128080336?wrap=1) (https://byui.instructure.com/courses/294268/files/128080336/download?download_frd=1) 3. Complete the IRA quiz. An individual who contributes to a Traditional IRA must demonstrate that he or she has at least the same amount of as the amount contributed to the IRA. 5/15/24, 6:45 PM W04 Study & Quiz: IRA: Personal Finance https://byui.instructure.com/courses/294268/quizzes/4591719 2/8
IncorrectQuestion 2 0 / 1 pts Dollar for dollar up to 3% of income. A flat 2% no matter how much the employee contributes. Both of the above. None of the above. IncorrectQuestion 3 0 / 1 pts The individual making the contribution is convicted of a felony. The individual (or household) making the contribution earns household AGI above a specific limit. The individual (or household) making the contribution earns household AGI below a specific limit. Contributions are always tax-deductible. No exceptions. Question 4 1 / 1 pts $6,000 $2,750 $6,000 X her marginal tax rate $0.00 (zero) Question 5 1 / 1 pts tax-deferred tax-free immediately SIMPLE IRAs allow employers to match what percent of employees contribution? Contributions to a traditional IRA may not be tax-deductible in the year the contribution was made under what condition(s)? Susanne makes $400,000 per year in earned income. She contributes $6,000 to a traditional IRA in 2020. What amount of the $6,000 contribution can she deduct from her taxable income in 2020? Withdrawals from a Roth IRA are classified as . 5/15/24, 6:45 PM W04 Study & Quiz: IRA: Personal Finance https://byui.instructure.com/courses/294268/quizzes/4591719 3/8
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help
tax-free after age 59 1/2, assuming the money was in the Roth IRA for a minimum of five years tax-deferred after age 59 1/2, assuming the money was in the Roth IRA for a minimum of five years Question 6 1 / 1 pts tax-free subject to an early withdrawal penalty not allowed subject to a special long-term capital gains tax only Question 7 1 / 1 pts tax-free non-taxable because they are non-qualified subject to ordinary income tax but are not penalized subject to an early withdrawal penalty plus ordinary income taxes Question 8 1 / 1 pts after-tax dollars pre-tax dollars rollover funds only tax refunds only Question 9 1 / 1 pts Roth IRA withdrawals that occur prior to retirement age (non-qualified distributions) are . Withdrawals from a traditional IRA that occur prior to retirement age (non-qualified withdrawals) are . A Roth IRA is funded with . Travis invests $6,000 per year in a Roth IRA. What does the money actually get invested in? 5/15/24, 6:45 PM W04 Study & Quiz: IRA: Personal Finance https://byui.instructure.com/courses/294268/quizzes/4591719 4/8
Money market funds. The Roth Trust Fund. Government sponsored. The Roth Trust fund earns 0.50 percent above the CPI each year. Returns are guaranteed and government insured. Fidelity Funds only. Whatever investments Travis chooses from the list of choices he is offered by the institution that he offered the Roth IRA account with. Question 10 1 / 1 pts Contributions are tax-deductible, if individual (or household) AGI is below a specified limit. Contributions may not be allowed, if individual (or household) AGI is above a specified limit. 100% of the value of the Roth IRA must be withdrawn in the first five years of the withdrawal period. Withdrawals after age 59 1/2 (assuming the money was in the account for five years) are taxed at the individual's ordinary income tax rate. IncorrectQuestion 11 0 / 1 pts $6,000 $5,500 $5,000 He is not allowed to contribute. IncorrectQuestion 12 0 / 1 pts entire balance of the 401(k) account employer matching funds only Individuals contributing to Roth IRAs are subject to which of the following rules? Gerald makes $1 million per year in earned income. What is the maximum amount he is allowed to contribute to his Roth IRA in 2020? Roth 401(k) plans are structured so that withdrawals from the are treated as tax- free. 5/15/24, 6:45 PM W04 Study & Quiz: IRA: Personal Finance https://byui.instructure.com/courses/294268/quizzes/4591719 5/8
employee contributions only Question 13 1 / 1 pts publicly traded corporations government entities non-profits self-employed individuals and small businesses Question 14 1 / 1 pts $6,000 per year. $2,000 per year. No cap. No limit. $18,000 per year. IncorrectQuestion 15 0 / 1 pts $6,000. He is under the limit for contribution "phase-outs." $2,750. He can only contribute half of the limit because he is over the $68,000 limit on contributions. $6,500. He can contribute more than normal because of his age. He is taking advantage of the 'catch up' provision. $0.00 (zero) IncorrectQuestion 16 0 / 1 pts $6,000 SEP IRAs are primarily intended for use by . In 2020, Traditional and Roth IRA contribution limits are generally capped at how much per year? Alejandro is 55 years old. Alejandro's only source of income is $75,000 in interest income in 2020. He does not have a job. How much money can Alejandro contribute to his Roth IRA in 2020? Scarlett makes $50,000 per year in bond interest income. She has no other source of income. She is 57 years old. How much money can she contribute to her traditional IRA in 2020? 5/15/24, 6:45 PM W04 Study & Quiz: IRA: Personal Finance https://byui.instructure.com/courses/294268/quizzes/4591719 6/8
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help
$6,500 (due to catch-up provision, given her age) $2,750 $0.00 (zero) Question 17 1 / 1 pts Roth IRA Traditional IRA SEP IRA SIMPLE IRA Question 18 1 / 1 pts education retirement charitable contributions (deferred) a mission Question 19 1 / 1 pts pre-tax dollars after-tax dollars rollover funds only tax-refunds only Question 20 1 / 1 pts Which of the following is classified as a tax-free investment account? A "Coverdell ESA" is intended to help one save for . Traditional IRAs are funded with . A 529 plan balance can be transferred to whom? 5/15/24, 6:45 PM W04 Study & Quiz: IRA: Personal Finance https://byui.instructure.com/courses/294268/quizzes/4591719 7/8
qualified family members of the beneficiary anyone peers that are the same age anyone who has U.S. citizenship Quiz Score: 14 out of 20 COPYRIGHT 2024 BRIGHAM YOUNG UNIVERSITY-IDAHO 5/15/24, 6:45 PM W04 Study & Quiz: IRA: Personal Finance https://byui.instructure.com/courses/294268/quizzes/4591719 8/8