In 2022, Nitai (age 40) contributes 10 percent of his $100,000 annual salary to a Roth 401(k) account sponsored by his employer, AYIncorporated. AY Incorporated matches employee contributions to the employee's traditional 401(k) account dollar-for-dollar up to 10percent of the employee's salary. Nital expects to earn a 7 percent before-tax rate of return.Assume he leaves the contributions in the Roth 401(k) and traditional 401(k) accounts until he retires in 25 years and that he makes noadditional contributions to either account. What are Nital's after-tax proceeds from the Roth 401(k) and traditional 401(k) accounts afterhe receives the distributions, assuming his marginal tax rate at retirement is 30 percent? (Use Table 1. Table 2.)Note: Round your intermediate calculations and final answers to the nearest whole dollar amount.After tax proceeds from distributionRoth 401(k)Traditional401(k)

A traditional 401(k) is a form of retirement savings plan that is sponsored by the business and…

Answered: In 2022, Nital (age 40) contributes 10…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Kaitlyn purchased a life annuity contract with money contributed to her employer-sponsored retirement plan. The employer had contributed $300,000 and Kaitlyn contributed $150,000 after-tax. She began receiving $2,400 per month on April 1, 2022 when she was age 60. How much of each payment received by Kaitlyn is excluded from gross income? $1,550 $517 $1,452 0 $323 $484
Clayton received a $140,000 distribution from his 401(k) account this year. Assuming Clayton's marginal tax rate is 25 percent, what is the total amount of tax and penalty Shauna will be required to pay if she receives the distribution on her 62nd birthday and she has not yet retired? Group of answer choices $0 $14,000 $35,000 $49,000 None of the choices is correct.
Mr. Victor, Age 66, retired in 2022. He is single. Prior to retiring, Mr. Victor received a $5,000 bonus plus $8,400 in wages. After he retired, he received $12,000 in Social Security benefits. Does Mr. Victor have to file a 2022 income tax return? Why or why not? Yes. Victor is required to file because he made in excess of $5,000 which is the required filing threshold. O Yes, Victor must file because he received earned income. No. Victor's does not have to file because his gross income is less than the standard deduction. O No. Victor does not have to file because he is over age 65 and retired and you are not required to file.
Matthew (48 at year-end) develops cutting-edge technology for SV Incorporated, located in Silicon Valley. In 2022. 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 law. 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. Note: Leave no answer blank. Enter zero if applicable. Show Transcribed Text A. Assuming Matthew's annual salary is $400,000, What can Matthew contribute to his 401(k) account in 2022? B. Assuming Matthew's annual salary is $240,000, What can Matthew contribute to his 401(k) account in 2022? C. Assuming Matthew's annual salary is $60,000, what amount can Matthew…
Toby and Nancy are engaged and plan to get married. During 2023, Toby is a full-time student and earns $6,700 from a part-time job. With this income, student loans, savings, and nontaxable scholarships, he is self-supporting. For the year, Nancy is employed and has wages of $85,800. Click here to access the standard deduction table to use. Click here to access the Tax Rate Schedules. If an amount is zero, enter, "0". Do not round your intermediate computations. Round your final answer to the nearest whole dollar. a. Compute the following: Gross income and AGI Standard deduction (single) Taxable income Income tax Toby Filing Single $ $ 6,700 Nancy Filing Single $ $ $ 85,800
For 2019 through 2022, Tanisha, who is single, borrowed a total of $25,000 for higher education expenses on qualified education loans. In 2023, while still living at home and being claimed by her parents as a dependent, she began making payments on the loan. The first year's interest on the loan was reported as $750, and her AGI for the year was less than $ 75,000. The amount thatTanisha can claim on her 2023 tax return isa. $750.b. $540.c. $ 425.d. $0
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Michael received the following income and fringe benefits in 2022: • Form W-2 wages: $40,500 • End-of-the-year bonus: $5,000 • Parking pass per month: $80 • Employer contribution to 401(k) plan: $750 • Occasional free use of a laser printer on the employer’s premises: $25 How much income must Michael report on his tax return?
In 2023, when the social security wage base limitation was $160,200, Jacee received a $100,000 business allocation from a partnership in which Jacee was a general partner. This is Jacee’s only source of income for the year. What is Jacee’s self-employment tax liability? Note: Round the final answer to the nearest whole dollar amount. $2,900 $3,824 $14,130 $15,300 None of the choices is correct.
Jackson and Ashley Turner (both 45 years old) are married and want to contribute to a Roth IRA for Ashley. In 2022, their AGI is $209,000. Jackson and Ashley each earned half of the income. Note: Leave no answers blank. Enter zero if applicable. c. Assume that Ashley earned all of the couple's income and that she contributed the maximum amount she is allowed to contribute to a Roth IRA. What amount can be contributed to Jackson's Roth IRA?
Steve Grayson, is self-employed age 43. He has established a SEP-IRA for himself several years ago. In 2019, Steve had a $1,000 excess contribution to his SEP-IRA. In 2020. his net earnings from the business are $80,000. He uses the maximum contribution rate for his SEP-IRA account. What amount would Steve's contribution be for 2020. a.) $14,870 b.) $0 c.) $13,870 d.) $57,000
Rita is a self-employed taxpayer who turns 39 years old at the end of the year (2020). In 2020, her net Schedule C income was $300,000. This was her only source of income. This year, Rita is considering setting up a retirement plan.What is the maximum amount Rita may contribute to the self-employed plan in each of the following situations? (Round your intermediate calculations and final answers to the nearest whole dollar amount.) a. She sets up a SEP IRA. b.She sets up an individual 401(k).

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