Ben is 65 and Karla is 60 and they have decided to retire and receive their CPP benefits. They have each worked for 30 years and have been spouses for 22 years. Karla was out of the workforce for 4 years raising children. Ben is entitled to a CPP payment of $580 per month and Karla a benefit of $340 per month. If they choose to assign their pensions, the amount of monthly benefit that Karla will receive is closest to: O 460 340

Ben is 65 and Karla is 60 and they have decided to retire and receive their CPP benefits. They have each worked for 30 years and have been spouses for 22 years. Karla was out of the workforce for 4 years raising children. Ben is entitled to a CPP payment of $580 per month and Karla a benefit of $340 per month. If they choose to assign their pensions, the amount of monthly benefit that Karla will receive is closest to: O 460 340

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter19: Deferred Compensation

Section: Chapter Questions

Problem 33P

See similar textbooks

Similar questions

Minnie owns a qualified annuity that cost 78,000. The annuity is to pay Minnie 650 per month for life after she reaches age 65. Minnie turns 65 on September 28, 2019, and receives her first payment on November 1, 2019. a. How much gross income does Minnie have from the annuity payments she receives in 2019? b. Shortly after receiving her payment on October 1, 2034, Minnie is killed in an automobile accident. How does the executor of Minnies estate account for the annuity on her return for the year 2034? c. Assume that the accident does not occur until November 1, 2043. How does the executor of Minnies estate account for the annuity on her 2043 return?
Greg died on July 1,2019 , and left Lea, his wife, a $45,000 life insurance policy which she elects to receive at $9,000 per year plus interest for 5 years. In the current year, Lea receives $9,500. How much should Lea include in her gross income? $____________
Virginia and Richard are married taxpayers with adjusted gross income of $28,000 in 2019 If Virginia is able to make a $1,500 contribution to her IRA and Richard makes a $1,500 contribution to his IRA, what is the Saver's Credit Virginia and Richard will be eligible for? $0 $1,500 $2,000 $3,000 $4,000
Kathleen and Glenn decide that this is the year to begin getting serious about saving for their retirement by participating in their employers’ § 401(k) plans. As a result, they each have $3,000 of their salary set aside in their qualified plans. a. Calculate the credit for certain retirement plan contributions available to Kathleen and Glenn if the AGI on their joint return is $35,000. b. Kathleen and Glenn persuade their dependent 15-year-old son, Joel, to put $500 of his part-time earnings into a Roth IRA during the year. What is the credit for certain retirement plan contributions available to Joel? His AGI is $7,000.
Mary-Ann is age 60 and plans to retire this year. She and her husband Wayne, age 66 have approached David the CFP to review her payment options from her defined contribution RPP. Wayne is already retired and receives $85,000 in annual indexed pension income which meets her lifestyle needs. They have no savings aside from their pension plans. Wayne wants to have financial flexibility in the event of an unforeseen circumstance, and Mary-Ann wants to ensure that their adult son Jim would receive financial support should they predecease him. Which of the following options would best meet their objectives? Question 11 options: Open a RRSP for Mary-Ann transferring the RPP balance into it Transfer the RPP balance into a LIRA for Mary-Ann Purchase a single life annuity with a 10-year guarantee, naming Jim as contingent beneficiary Select a joint life annuity with a level survivor benefit for Wayne
Vickie and her husband Jason have been married for 25 years and are planning to retire this year. Jason's PIA is $2,000. Renee's PIA is $800. Assuming they are both full retirement age, what is their maximum joint retirement benefit under Social Security? $3,000 $2,800 $2,000 O $4,000
Danny and Sandy have come to your office to discuss some retirement planning issues. Danny will be turning age 65 in five months and Sandy is currently 63. Danny has not started collecting Social Security benefits yet because he is still working, and he is unsure whether he will retire this year or wait a few more years. Sandy has never worked outside the home. If he continues to work, Danny will have health insurance for both himself and Sandy through his employer with a $250 annual per person deductible, a 90% coinsurance, and a maximum out-of-pocket limit of $5,000. Danny’s share of the premium is $50 per pay. Many of their retirement questions have to do with Medicare and health insurance because both Danny and Sandy have existing health issues. All the following statements are proper advice for you to give Danny and Sandy, EXCEPT: Danny should delay enrollment in Medicare Part B until he is no longer covered under his employer’s health plan. Sandy will be eligible for…
Pam retires after 28 years of service with her employer. She is 66 years old and has contributed $42,000 to her employer’s qualified pension fund. She elects to receive her retirement benefits as an annuity of $3,000 per month for the remainder of her life.a. Assume that Pam retired in June 2018 and collected six annuity payments that year. What is her gross income from the annuity payments in the first year?b. Assume that Pam lives 25 years after retiring. What is her gross income from the annuity payments in the twenty-fourth year?c. Assume that Pam dies after collecting 160 payments. She collected eight payments in the year of her death. What are Pam’s gross income and deductions from the annuity contract in the year of her death?
Jean and Dan both work. Each earns a salary of $46,000, but only Jean is a member of a registered pension plan. Both she and her employer contribute 2 percent of her gross salary to a defined contribution pension plan. Jean has no unused RRSP room carried forward as she has maxed out her RRSP each year. Dan has $15,000 of unused RRSP contribution room carried forward showing on his Notice of Assessment. Calculate the maximum RRSP contribution that each can make this year. (Omit the "S" sign in your response.) Maximun KRSP contribution Jean 6440 3 Ran 23280
Ruben and his wife Nicky have been married for 25 years and are planning to retire this year. Jason's PIA is $2,000. Renee's PIA is $800. Assuming they are both full retirement age, what is their maximum joint retirement benefit under Social Security? $3,000 $4,000 $2,000 $2,800
Mary is 66 years old and receives full old-age benefits from Social Security-in her case, $1,200 per month. Her husband Ralph, age 68, who has not worked enough quarters outside the home to be covered in his own right, receives 50% of what Mary receives each month ($600). Assume that Mary dies tomorrow. What will Ralph's Social Security benefit be? a. $600 b. $1,200 c. $1,800 d. $2.400
Sue, aged 48 and Paul, aged 49 have two daughters- Leena aged 17 and Reena aged 15. Sue works as a part-time teacher in a secondary school and earns a $26,000 p.a. salary (plus minimum superannuation guarantee contribution).Paul works as a dentist and earns $145,000 (plus minimum superannuation guarantee contribution). Paul is anxious about their post-retirement financial situation. The couple has approached you for financial advice in respect of reducing the tax payable and their retirement planning. Superannuation Sue (20% Tax Free) 270,000 Sue’s Superannuation asset allocation Investment Asset Allocation Performance p.a. after tax Australian Share 50% 4% Cash & Fixed Interest 15% 1.4% International Shares 30% 10.80% Property 5% 3.10% Calculate the expected return for Sue’s superannuation portfolio using the return for the year ended 2022. Explain to Sue why her superannuation…