2023 Case 6 Income Tax Planning

Review your list of personal financial goals. For each goal, how does the U.S. Tax Code help or hinder you in achieving it?   My main goals right now is buying a house, getting 10k in short term savings and saving for retirements

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A ROTH IRA or 401(k) allows you to take money out tax free, and thank your Professor for telling you to open, and fund this type of investment! O True O False

Cindy Schultz was recently hired at Bradonly Health Care. Cindy is in her 30s and in great health. She wants a flexible insurance plan and a tax-free savings plan. Which of the following would be the best option for Cindy? a. HDHP b. PPO c. Medicaid d. HMO

Provide solution this financial accounting question

Which of the following practices helps an individual survive in a financial crisis? A.Planning tax without considering tax shelters   B.Establishing an emergency fund with 6 months’ worth of income   C.Spending more than his or her earnings to maintain a good lifestyle   D.Investing small amounts regularly to achieve long-term financial goals   E.Developing financial plans only after reaching the highest tax brackets

Suppose you are 28 and married. You and your spouse file for income taxes jointly. You are in the 25% tax bracket. You are considering a few personal investment issues. While insurance is an effective way to protect against undesirable risk, it is by no means the only way. There exist many other tools for personal risk management. Cash reserve is one such example. By keeping cash reserve, you self-insure against unexpected future loss. Compared with self-insurance using cash reserve, buying insurance has both pros and cons. The biggest pro is mortality pooling—more efficient to manage risk on the group level than on the individual level. The biggest con is the high price of insurance policy. The high insurance premium results not just from an insurance company’s costs of producing the insurance but also from the high costs to market it (e.g.,commissions paid to insurance agents) and the additional costs caused the prevalent adverse selection and moral hazard problems in the…

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Is this information correct in how to set up an RRSP

10. Benefits of traditional and Roth 401(k) plans Traditional 401(k) versus Roth 401(k) Felix has decided to contribute to a savings program. He can open a traditional 401(k) or a Roth 401(k) and has determined that he can afford a $15,600 contribution. Felix's salary is $130,500 per year, and he is in the 28% tax bracket. If Felix decides to go with a traditional 401(k), his contribution amount will be s And the amount offset via a reduced tax bill will be s If, instead, Felix decides to go with a Roth 401(k), his contribution amount will be s And the amount offset via a reduced tax bill will be s Assuming all the same facts, suppose that Felix decides to open both 401(k) plans, splitting what he can afford to contribute equally between both plans. Under this scenario, Felix's contribution amount will be s And the amount offset via a reduced tax bill will be s When Felix retires, which plan's monies will he be able to exclude from taxable income? Traditional 401(k) Roth 401(k)

Which will result in a higher net worth? I. Paying down debt with cash flows. II. Making regular periodic savings. III. Acquiring long-term assets with a line of credit. IV. Purchasing a condo with a mortgage and using funds from the Tax-Free Savings Account (TFSA) for the down payment. A I and II B Il and IV I and III D III and IV IV only

Evaluate the three strategies reducing income, increasing deductions, and taking advantage of tax credits that you listed based on their overall effect on a person's tax situation (the amount of income taxes that the person will have to pay). Evaluate the ethical issues related to the payment of income taxes. in other words, if there is a legal tax-saving strategy available to a person who earns $50,000 per year, will it be ethical for the person to utilize this strategy in order to pay less tax? State how your answer to the previous question would change if the person were making $1,500,000.

Question 3: Which of the following is taxable for Social Security tax? Answer: А. O Contributions to a 403(b) plan В. O Contributions to a flexible spending account С. O Contributions to a dependent care flexible spending account D. O Contributions to a cafeteria plan

22. Is the following correct concerning Roth Ira's    A. Contributions made to your Roth ira are made with after tax dollars.   B contribution made to Roth IRA are made with pre-tax dollars.   C. You can withdraw contributions made to your Roth IRA at any time tax and penalty free.

D6)  Time remaining: 00:09:33 Finance Andrew and Gina, both aged 56, are well off financially and are in the highest marginal tax bracket. They want to gift money to their two teenage grandchildren to pay for their college education. Andrew and Gina are confused about the different savings options that are available to them and have asked you, their financial planner, for advice in sorting this out. Which statement is not correct? Group of answer choices a.A Section 2503(b) trust is not the best savings option because the trust must distribute all income each year to the trust's income beneficiaries. b.A custodial account can accumulate income that can be used to pay for any educational expenses, but the earnings are not tax‐deferred. c. Distributions taken from Andrew's traditional IRA to pay for qualified education expenses after age 59½ are not taxable to Andrew. d. Appreciating stock gifted to the grandchildren would reduce the value of the couple's gross estate and…

the concept "pay yourself first". With this in mind, what is your advice to someone on paying off credit card debt and investing for their retirement? Do you feel as though they should pay off all credit card debt before investing for their retirement or is it best to start investing for retirement as soon as possible? Why? * 350 word minimum