ERISA provides for full vesting of the employer's retirement contributions as follows: Select one: a. 100% vested in six years or gradually over three years b. 100% vested in three years or gradually over ten years c. ERISA does not provide guidance for vesting of employer retirement contributions d. 100% vested in three years or gradually over six years

ERISA provides for full vesting of the employer's retirement contributions as follows: Select one: a. 100% vested in six years or gradually over three years b. 100% vested in three years or gradually over ten years c. ERISA does not provide guidance for vesting of employer retirement contributions d. 100% vested in three years or gradually over six years

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter5: Deductions For And From Agi

Section: Chapter Questions

Problem 12MCQ

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Which of the following statements is correct regarding limitations on employer's contributions to qualified retirement plans in 2021? a. Defined benefit plans are limited to an annual benefit to an employee of the lesser of $58,000 or 100% of the employee's average compensation for the highest three years. b. Defined contribution plan contributions are limited to the lesser of $230,000 or 25% of an employee's compensation. c. Defined contribution plan contributions are limited to the lesser of $58,000 or 100% of an employee's compensation. d. If an employer has more than one type of qualified plan, a maximum deduction of 100% of compensation is allowed.
Annual additions to qualified retirement plans include interest and dividend income. forfeitures reallocated to plan participants. employee contributions. employer contributions. A) I, II, and III B) II, III, and IV C) I, II, III, and IV D) II and IV
Taxpayers who make after-tax contributions to a qualified employer plan recover their investment (cost) when they begin to take periodic payments. How is their investment recovered? a. The after-tax portion is recovered first b. the after-tax portion is recovered last c. Part of each year's distribution is taxable and part is recovery of cost until all the cost is recovered. d. Each year's distribution is multiplied by a fixed percentage to determine the taxable amount and the cost recovery of each distribution.
Mota Corporation maintains a tax-qualified, funded, noncontributory defined benefit retirement plan covering substantially all of its permanent employees. The benefits are based on years of service and compensation during the latest year of employment. A retirement valuation was made as at each financial yearend. The defined benefit retirement plan meets the minimum retirement benefit specified under Republic Act (RA) No. 7641, Retirement Pay Law. The following information has been provided to you in relation to your financial statement disclosure review of Nishida Corporation: Based on the information above, answer the following: What is the balance of the net retirement liability (asset) on December 31, 2019? What is the retirement expense in the income statement for the year ended December 31, 2020? What is the remeasurement loss (gain) in other comprehensive income for the year ended December 31, 2020 in relation to its defined benefit plan?
Which of the following income is taxable? * A. Proceeds of life insurance policy paid to the heirs or beneficiaries upon the death of the insured. B. Employment gratuities in exchange for services rendered by employees. C. Retirement benefit under RA 7641 D. Gains from the sale of bonds with maturity of more than 5 years
Annual additions to qualified retirement plans include interest and dividend income. forfeitures reallocated to plan participants. employee contributions. employer contributions.
In pension accounting, the employer's net pension liability: A. Is the amount the government intends to contribute within 30 days after yearend to the pension plan. B. Is based on actuarial valuations generally required to be performed at least every five years. C. Represents the portion of the present value of projected benefit payments to be provided through the pension plan to current active and inactive employees that is attributed to those employees' past periods of service. D. Is measured as the total pension liability less the amount of fiduciary net position held for future pension payments.
Under a Roth IRA, I. any taxpayer may contribute and deduct up to $6,000 deductible contributions per year. II. the maximum annual contribution is phased out for unmarried taxpayers with adjusted gross income between $124,000 and $139,000. Oa. Only statement I is correct. Ob, Only statement II is correct. Oc. Both statements are correct. Od. Neither statement is correct. Previous Next
5. What is the total pension expense in 2021?6. How much from the pension expense is recognized in the 2021 profit or loss?7. How much from the pension expense is recognized in the 2021 other comprehensiveincome or loss?
True/False As long as an individuals emplyer has paid at leats 50% of the total contribution cost to fund and employee's pension, all pension plan payments received by the retired employee must be included in gross income of the retired employee.
Question 54 of 75. Each taxpayer is covered by an employer retirement plan in 2022. Choosing from the listed scenarios, who may qualify for a full deduction of their traditional IRA contribution? O Barker, who files single with modified adjusted gross income of $68,025 Crosby, who is filing a joint return as a qualifying surviving spouse with modified adjusted gross income of $94.000. Darius, who flies head of household with modified adjusted gross income of $68.500 Kaitlyn, who fles a joint return with Kenneth, with modified adjusted gross income of $109.200 Mark for follow up
result of the termination benefits in 2020? retirement age specified in the entity's pension plan. offer expired on November 30, 2020. 2. What amount should be recognized in profit or loss as a On September 1, 2020, Howe Company offered special termination benefits to employees who had reached the early The termination benefits consisted of lump sum and periodic receive the usual early retirement pension benefits. The Additionally, the employees accepting the entity offer Problem 19-15 (AICPA Adapted) ay ng future payments. ry Additionally, the employees accepting the entity offer neive the usual early retirement pension benefits. The d. Actual or reasonably estimated amounts on December 31, 2020 relating to the employees accepting the offer are as follows: 475,000 Lump sum payments made on January 1, 2021 Present value of periodic payments of P60,000 annually for 3 years which will begin January 1, 2022 ge 155,000 Reduction of accrued pension cost on December 31, 2020 for terminating…