Provide correct answer for this finance question Yusef has a defined benefit retirement plan withhis company. He has worked for the company for35 years, but he is ready to retire. His averageending salary is $100,000. His company uses afactor of 0.02 for determining the annual benefitsof the retirement plan. How much of an annualretirement benefit should Yusef expect to receivefrom his company when he retires?A. $20,000/yearB. $33,333/yearC. $70,000/yearD. $120,000/year

Step 1: Defined benefit retirement planThe plan renders the benefits to the employees after their…

Answered: Yusef has a defined benefit retirement…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter9: Deduct Ions: Employee And Self-employed - Related Expenses

Section: Chapter Questions

Problem 38P

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Darrell is an employee of Whitneys. During the current year, Darrells salary is 136,000. Whitneys net self-employment income is also 136,000. Calculate the Social Security and self-employment taxes paid by Darrell and Whitney. Write a letter to Whitney in which you state how much she will have to pay in Social Security and self-employment taxes and why she owes those amounts.
Tia is married and is employed by Carrera Auto Parts. In 2019, Carrera established high-deductible health insurance for all its employees. The plan has a 2,700 deductible for married taxpayers. Carrera also contributes 5 percent of each employees salary to a Health Savings Account. Tias salary is 30,000 in 2019 and 32,000 in 2020. Tia makes the maximum allowable contribution to her HSA in 2019 and 2020. She received 600 from the HSA for her 2019 medical expenses. In 2020, she spends 1,400 on medical expenses from her HSA. The MSA earns 28 in 2019 and 46 in 2020. a. What is the effect of the HSA transactions on Tias adjusted gross income? b. How much does Tia have in her HSA account at the end of 2020?
Jacob is a member of his employers defined contribution pension plan. He has pensionable earnings of $110,000 and he contributes 6% of his earnings and his employers will match his 6%. What is Jacob's pension adjustment for the year? Question 5 options: $13,200 $11,000 $6,600 $19,800 Spencer has a RRSP with a balance of $600,000. Unfortunately, Spencer experienced a severe heart attack and died. Spencer was recently divorced and she had not assigned a beneficiary to her RRSP account. She also did not have a current willWhich of the following statements about her RRSP account is correct? Question 2 options: The assets in Spencer's RRSP will be fully included in her income in the year of death The assets in Spencer's RRSP will be included at a rate of 75% in her income in the year of death The assets in Spencer's RRSP will be included at a rate of 50% in her income in the year of death The assets in the RRSP will transfer to Spencer's heirs tax free.
Steve retired at the beginning of 2020. He worked for a company with a defined benefit plan. The plan provides for retirement benefits at a rate of 3% of the last three years' average compensation for every year of service. Steve had worked for this company for 30 years when he retired. His average salary for the last three years was $700,000. The maximum benefit Steve can receive from his retirement plan in 2020 is $ _____. (Enter your answer as a number.)
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Julie has just retired. Her company’s retirement program has two options as to how retirement benefits can be received. Under the first option, Julie would receive a lump sum of $159,000 immediately as her full retirement benefit. Under the second option, she would receive $22,000 each year for 7 years plus a lump-sum payment of $67,000 at the end of the 7-year period. Click here to view Exhibit 7B-1 and Exhibit 7B-2, to determine the appropriate discount factor(s) using tables. Required: 1-a. Calculate the present value for the following assuming that the money can be invested at 11%. 1-b. If she can invest money at 11%, which option would you recommend that she accept?
Julie has just retired. Her company’s retirement program has two options as to how retirement benefits can be received. Under the first option, Julie would receive a lump sum of $138,000 immediately as her full retirement benefit. Under the second option, she would receive $25,000 each year for 6 years plus a lump-sum payment of $57,000 at the end of the 6-year period. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required: 1-a. Calculate the present value for the following assuming that the money can be invested at 12%. 1-b. If she can invest money at 12%, which option would you recommend that she accept?
How much Mary include in her gross income in year 1 ?
Oscar is looking forward to retirement in a few years when he will have completed 20 years of pensionable service. Oscar's pension plan provides an annual pension benefit of 1.5% of average career earnings for each year of pensionable service. Using information from Oscar's pension statements, he estimates his career average annual earnings will be $50,000 when he retires with 20 years of service. Given these assumptions, calculate Oscar's annual pension benefit that he can expect to receive when he retires. $7,500 $10,000 $15,000 $20,000
Solve this question is accounting question
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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

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