Mrs. Lee, age 70, withdrew $40,000 from her traditional IRA this year. The balance in the account at year-end was $96, 600, which included $28,000 of nondeductible contributions. Compute the taxable portion of the $40,000 withdrawal. A) SO B) $8, 19⁹9 C) $31, 801 D) $40,000

Seth starts an IRA (Individual Retirement Account) at the age of 3232 to save for retirement. He deposits $450$⁢450 each month. Upon retirement at the age of 6565, his retirement savings is $488,809.01$⁢488,809.01. Determine the amount of money Seth deposited over the length of the investment and how much he made in interest upon retirement.

For the past three years, Gurpreet has been contributing $10,000 to a spousal RRSP, which his wife Divya, as the annuitant. Last year, Divya retired and transferred her spousal RRSP to a spousal RRIF and elected to make the minimum withdrawals based on her own age. At the beginning of this year, Divya was 65 years old and the RRIF value was $222,500. This year, Divya withdrew $20,000 from her spousal RRIF. How much would Divya be required to include in her income for tax purposes?

Max retired in 2017 at age 62. During the year he received distributions of $12,000 from his IRA. He made nondeductible contributions of $30,000 to the IRA in prior years and has never received a nontaxable distribution. As of December 31, 2019, the value of his IRA was $250,000. Calculate the nontaxable portion of Max's distribution.     $10,560.     $1,440.     $10,626.     $1,374

QOn February 15th, Jody had $17,000 in her RRSP. On that same day, she made a contribution of $6,500, increasing the total to $23,500. On March 1st, the RRSP was credited with $1,500 in earnings, increasing the RRSP balance to $25,000. On March 15th, Jody went to the bank to withdraw RRSP funds to help her purchase her first home. Considering that Jody wants to deduct her February contribution, what is the maximum eligible amount she can withdraw from her RRSP under the Home Buyers’ Plan?

On Juan’s 26th birthday, he deposited $9,000 in a retirement account. Each year thereafter, he deposited $1,000 more than the previous year. Using a gradient series factor, determine how much was in the account immediately after his 35th deposit if: a)the account earned annual compound interest of 3.7% b)the account earned annual compound interest of 4.7% PLEASE show step by step to understand whats going on, in the simplest way of explaining.

A taxpayer, age 64, purchases an annuity from an insurance company for $80,000. She is to receive $667 per month for life. Her life expectancy is 20.8 years from the annuity starting date. Assuming that she receives $8,000 this year, how much is included in her gross income? Round any percentages to two decimal places. Round the final answer for the income to the nearest dollar. Exclusion percentage: Included in income: LA %

Alexandra Cunningham of Gardner, Massachusetts, has a $140,000 participating cash-value policy written on her life. The policy has accumulated $4,500 in cash value; Alexandra has borrowed $2,300 of this value. The policy also has accumulated unpaid dividends of $1,352. Yesterday Alexandra paid her premium of $1,000 for the coming year. What is the current death benefit from this policy?

Claude made semi-annual deposits of $3200 at the beginning of every six- month period into a fund earning 4.2% compounded semi-annually for eight years. No further deposits were made. A) the balance in the account sixteen years after the first deposit will be $___ B) the amount deposited was $___ in total C) Claude will have earned $ __ in interest

Mason Phillips, age 45, and his wife, Ruth, live at 230 Wood lane, Salt lake City, UT 84101. Masons Social Security number is 111-11-1111. Ruths Social Security number is 123-45-6789. Mason and Ruth arc cash basis taxpayers and had the following items for 2019: Salary of 140,000. Had debt of 30,000 from uncollected rent. Collection of unpaid rent from a prior year of 6,000. Sale of 124-i stock resulting in a loss of 105,000. The stock was acquired eight months ago. Rental income of 60,000 (property is managed by Mason and Ruth). Rental expenses of 33,000. Casualty loss on rental property of 10,000. Personal casualty loss (from one event) of 3,000; not in a Federally declared disaster area. Theft loss of 8,000 on a painting held for investment. Other itemized deductions of 21,000. Federal income tax withheld of 3,000. (Compute Mason and Ruths 2019 Federal income tax payable (or refund due).