Tina, your client, is the 55-year-old widow of Paul, who was 58 years old when he died earlier this year. Ed, age 35, is theironly child. Tina is the primary beneficiary and Ed is the contingent beneficiary of Paul's IRA, which is worth $400,000. Whichone of the following planning techniques will accomplish Tina's goal of deferring taxes for as long as possible on Paul's IRA?A) beginning payments to Tina based on her remaining life expectancyB) beginning payments to Ed based on his life expectancyC) initiating a dependent rollover to EdD) doing a rollover to Tina's IRA

Step 1:Concept1. Spousal Rollover: - Only available to surviving spouses - Allows the surviving…

Answered: Tina, your client, is the 55-year-old…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Clare, age 28, that are financially independent. Robert is married and has one child and Clare is going to get married. Both Robert and Clare are planning to have more children. Adam’s and Liz’s total estate compromises of: They also have the two following mortgages: Mortgage on residential property: £130,000 Buy To Let mortgage: £80,000 Answer the following questions: A) Could you please calculate what is going to be the Inheritance tax liability if Adam dies and transfers all his Estate to his children
Your mother's employer offers a tax-deferred retirement plan (a 401-b plan, which was authorized by Congress to encourage savings) which would permit her to invest, tax-free until she retires, up to 15 percent of her salary. Once you are out of school (one year from today), she figures she can save $1,000 every 6 months, or $2,000 per year. The insurance company which manages the retirement fund promises to pay a stated (or simple) rate of 12 percent per year, but with quarterly compounding. If your mother invests $1,000 each six months, starting six months after you graduate (or 18 months from today), how much will she have 5 years from now, assuming the last payment is made at the end of Year 5? (Hint: She will make a total of 8 payments.) Group of answer choices $9,929 $12,300 $12,462 $9,897 $10,000
Cheryl and Terrell have been married for 35 years. Cheryl turned 71 on May 5, 2023, and had a big celebration. Terrell's 67th birthday is coming up on January 16, 2024. Cheryl has already started planning for his birthday. Cheryl is the financial guru in the family and knows to convert her Registered Retirement Savings Plan (RRSP) to a Registered Retirement Income Fund (RRIF) before December 31, 2023. She estimates that the Fair Market Value (FMV) of her RRIF on January 1, 2024, will be $792,500. She knows that her spouse's age is important in the RRIF withdrawal calculation. She estimates that Terrell's Registered Retirement Savings Plan (RRSP) investments will have a Fair Market Value on January 1, 2024, of $488,325. Based on the information Cheryl provided, what is the minimum amount she must withdraw from her RRIF amount in 2024, taking advantage of Terrell's age? Age and RRIF Factors RRIF Factors 4.00% 4.17% 4.35% 4.55% 4.76% 5.00% 5.28% 5,40% 5.53% 5.67% Age 65 66 67 68 69 70 71…
Owen is considering giving a large charitable contribution to an organization in the current year. Owen's adjusted gross income for the year will be $150,000. He wants to contribute $80,000 in either cash or property. If he contributes cash to a public charity, he can deduct $ 48000 this year. If he contributes capital gain property that is worth $80,000 to a public charity, he can deduct $24000 Or, if he contributes the publicly traded stock to a private nonoperating foundation, he can deduct $ 16000 year. Correct Answer 90000 45000 30000 this
Sharon and Brian are in good health and have reasonably secure careers. Each earns $45,000 annually. They own a home with a $125,000 mortgage; they owe $25,000 for their car loans and have $22,000 in student loans. If one should die, they think that funeral expenses would be $12,000. What is their total insurance need using the DINK method?
Amount of Insurance Needed. Peter is married and has two children. He wants to be sure that he has sufficient life insurance to take care of his family if he dies. Peter's wife is a homemaker but attends college part-time pursuing a law degree. It will cost approximately $40,000 for her to finish her education. Because the children are teenagers, Peter feels he will only need to provide the family with income for the next ten years. He further calculates that the household expenses run approximately $61,600 per year excluding the mortgage payments. The balance on the home mortgage is $ 125,000. Peter set up a college fund for his children when they were babies, and it currently contains sufficient funds for them to attend college. Assuming that Peter's wife can invest the insurance proceeds at 9%, calculate the amount of insurance Peter needs to purchase. The amount of life insurance Peter would need to purchase is?
2.Colin is 35 years old and inherits an IRA from his mother, who dies prematurely at age 60. Which of the following statements is correct regarding his options for the inherited IRA? Colin does not have to take distributions until his mother would have been 70 years old. Colin can rollover the IRA into his own IRA. Colin can take out the entire distribution within ten years and avoid all penalties. Colin must take distributions over his single life expectancy.
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Kennedy had a very busy 2022 as she graduated with a master in public health in May and began work in July. She has asked you for help with her 2022 tax return. For each item, indicate whether: (i) the item would be recognized in gross income this year, (ii) the item would be excluded or deferred from gross income this year, or (ii) more information is needed. Kennedy sold a condo for $150,000 which she purchased for $130,000 five years ago. She did not live in the condo at any point. Multiple Choice Included. More information is needed Excluded or Deferred
The Wilmoths plan to purchase a house but want to determine the after-tax cost of financing its purchase. Given their projected taxable income, the Wilmoths are in the 24% Federal income tax bracket and the 8% state income tax bracket (i.e., an aggregate marginal tax bracket of 32%). Assume that the Wilmoths will benefit from itemizing their deductions for both Federal and state purposes. The total cash outlay during the first year of ownership will be $25,200 ($2,520 principal payments, $22,680 qualified residence interest payments). If required, round your interim calculation to nearest dollar. As a result, the annual after-tax cost of financing the purchase of the home will be $
Jack asked Jill to marry him, and she has accepted under one condition: Jack must buy her a new $340,000 Rolls-Royce Phantom. Jack currently has $57,940 that he may invest. He has found a mutual fund with an expected annual return of 4.5 percent in which he will place the money. How long will it take Jack to win Jill's hand in marriage? Ignore taxes and inflation.

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