Ashford, age 45, is an active participant in his employer's defined benefit retirement plan, but he would also like to make a deductible contribution to a traditional IRA this year. Ashford is married, files a joint return with his spouse, and has an AGI of $114,000 in 2021. What is the maximum deductible contribution that Ashford can make to a traditional IRA?
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- Marcus is 54 and single. He would like to make the maximum Roth IRA contribution in 2022. He is an active participant in ABC Corp.'s profit sharing plan, and his AGI is $130,500. What is his maximum Roth IRA contribution? A) $7,000 B) $5,000 C) $6,300 D) $6,000 Give typing answer with explanation and conclusionReview the following scenario. Use the information provided to answer questions about the taxpayer’s 2020 return.Evonne Williams (32) is filing as a single taxpayer. Evonne was the beneficiary of one of her great-grandmother’s traditional IRAs. She passed away during the year, and Evonne took a $2,000 total distribution from the IRA. She then used the money to pay down her credit card debt.Evonne did not qualify for any COVID-19 related exceptions for IRA distributions. As far as she knows, all of her great-grandmother’s contributions to the account were deductible.Evonne’s only other income during the year was $44,000 in wages. She will claim the standard deduction. Question 1. Evonne received the following Form 1099-R reporting the IRA distribution. The form shows a code "4" in box 7, indicating that the distribution is due to death. When Evonne files her 2020 return, how much of the distribution must she include in her total income? $0 $200 $1,800 $2,000Rex, age 47, an employee at Water Waste, is considering contributing to a 401(k) plan during 2022. Which of the following statements are true? Rex can contribute $20,500 to a 401(k) plan and an additional $20,500 to a 401(k) Roth account in the current year. If Rex does make an elective deferral contribution, the amount is not currently subject to income or payroll taxes. Rex can make a $27,000 elective deferral contribution to a 401(k) plan for 2022. O Water Waste must deposit Rex's elective deferral contribution to the plan as soon as reasonably possible
- Alice, age 50, is provided “free” group term life insurance coverage equal tofour times her annual salary of $200,000 per year by her employer. How much must sheinclude in her 2021 gross income Can you show me your work so I can better understand this.Mandy was a participant in her employer's contributory qualified pension plan. Her contributions were made with after-tax dollars. At her death, her account reflects the following: Mandy's contribution $200,000 Employer's contribution 275,000 Income earned 120,000 a. As to the plan, how much should be included in Mandy's gross estate?b. If the account balance is paid to Mandy's surviving spouse, how much qualifies for the marital deduction?c. How much is subject to the Federal income tax?Phil has a defined-benefit plan that pays him a pension of 1.8 percent of his average best three years' earnings. His earnings are as follows: 2016, $58,000; 2017, $62,000; 2018, $65,000; 2019, $66,000; 2020, $62,000; 2021, $72,000; 2022, $75 000. What will be his annual pension benefit if he was with Plastis Co. for 23 years? a. $16,224 b. $30,360 c. $28,789 d. $29,394
- Harry is 45 years of age and is a member of a specified pension plan (SPP). She is planning for an active retirement that she expects will last 30 years. Harry believes she will need $75,000 before tax to support her desired retirement lifestyle. If Harry retires at age 60, how much would she need in her SPP to provide an annual retirement income of $75,000, paid at the beginning of each year? Assume an interest rate of 6% compounded annually. Disregard income taxes. (place answer below to the nearest dollar with no $ sign)Matthew (48 at year-end) develops cutting-edge technology for SV Inc., located in Silicon Valley. In 2019, Matthew participates in SV’s money purchase pension plan (a defined contribution plan) and in his company’s 401(k) plan. Under the money purchase pension plan, SV contributes 15 percent of an employee’s salary to a retirement account for the employee up to the amount limited by the tax code. Because it provides the money purchase pension plan, SV does not contribute to the employee’s 401(k) plan. Matthew would like to maximize his contribution to his 401(k) account after SV’s contribution to the money purchase plan. (Leave no answer blank. Enter zero if applicable.) d. Assume the same facts as part (c), except that Matthew is 54 years old at the end of 2019. What amount can Matthew contribute to his 401(k) account in 2019?Pension Benefits. (Obj. 2) On August 10, 2018, Don turned 65 and received his first pension payment. Over the years, he had contributed $68,900 to his employer’s qualified retirement plan. Taxes were paid on $24,700 of this amount. The remaining $44,200 was contributed after the law was changed to permit pre-tax contributions to the plan. Don is to receive monthly benefits of $425 on the same day every month for the remainder of his life. From the 5 monthly payments, Don receives in 2018, what amount is included in gross income? If Don receives 12 payments in 2019, what amount does he include in gross income? If Don lives longer than his expected 260 payments, how much of each month’s $425 payment will be included in his gross income? How would your answer to Parts a. - c. change if Don were married and his pension benefits were to continue for both his and his wife’s lives? Don’s wife is 61 as on August 10, 2018.
- Malcolm knows about the Old Age Security (OAS) pension clawback but is unsure how to calculate if for him and his wife. In 2020, the OAS pension is clawbacked or reduced by 15% above $79,054. Malcolm and his wife are both receiving monthly pensions of $613.54. His net income is $130,000 while his wife's net income is $85,000. What is the total amount they have to repay in 2020? Minimum Income Recovery Threshold Maximum Income Recovery Threshold $79,054 $8,254 $14,725 $892 $13,833 $7,362 $128,137Jada (age 53) and Elijah (age 60) are married, and both are self-employed. In 2023. they participate in a health insurance plan with a $3,000 annual deductible and out-of-pocket maximum of $9,000. The only other health plan they have is a vision insurance plan. If they can contribute to an HSA what is their maximum contribution and deduction? ________________Joey, who is single, is not covered by another qualified plan and earns $126,000 at his job in 2020. How much can he contribute to a traditional IRA or to a Roth IRA in 2020?