AJ.3 3. A 42-year-old single taxpayer with AGI of $49,000 can make which of the following IRA contributions if they are notcovered by a plan at work?Cda. $7,500 to either a traditional IRA or a Roth IRAb. $7,500 to only a traditional IRAc. $6,500 to only a Roth IRA onlyd. $6,500 to either a traditional IRA or a Roth IRA

Individual retirement accounts, sometimes known as IRAs, are flexible financial instruments that…

Answered: 3. A 42-year-old single taxpayer with…

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter19: Deferred Compensation

Section: Chapter Questions

Problem 41P

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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
For the following scenarios, compute the maximum total deductible contribution to a traditional IRA for 2023. Traditional IRA Contribution 6,000 X a. Juan, age 41, earns a salary of $58,000 and is not an active participant in any other qualified plan. His wife, Agnes, generates no earned income. b. Abby, age 29, reports earned income of $45,000, and her husband, Sam, reports earned income of $4,600. They are not active participants in any other qualified plan. c. Leo's employer makes a contribution of $3,500 to Leo's simplified employee pension plan. Leo is single, he reports earned income of $70,000, and his AGI is $55,000. 10,600 x 6,000 X
The SECURE 2.0 Act of 2022, Section 307, allows a taxpayer who wants to make a charitable contribution from their IRA, to make a one-time rollover to an eligible split interest entity. What is the maximum amount allowed to be contributed? o $5.000 o $10.000 o $25.500 o $50.000
What is the maximum age a taxpayer is eligible to contribute to a traditional IRA for 59.5 70.5 72 k There is no age limit on contributions.
Individual Retirement Accounts (LO 5.3) Donna, age 42 and a single taxpayer, has a salary of $104,500 and interest income of $20,000. What is the maximum amount Donna can contribute to a Roth IRA for 2020? a.$6,000 b.$3,850 c.$5,800 d.$5,000 e.Some other amount
Individual Retirement Accounts (LO 5.3) Mindy has a Roth IRA held longer than 5 years to which she has contributed $30,000. The IRA has a current value of $62,000. Mindy is 55 years old and she takes a distribution of $40,000 after retiring on disability. How much of the distribution will be taxable to Mindy? a.$8,000 b.$40,000 c.$0 d.$30,000 e.Some other amount
In a ROTH IRA or 401 (k): O A. Contributions are NOT tax deductible in the year they are made B. Withdrawals are tax free as long as they are held for at least 5 years and you are at least 591/2 years old C. Neither A nor B D. Both A & B
A qualified distribution from a Roth IRA must meet which of the following requirements? I. The distribution must be made on or after the taxpayer reaches age 59/2. II. The distribution is for qualified education expenses. III. The taxpayer must begin distributions after reaching age 70/2. Oa. Only statements I and II are correct. Ob. Only statement I is correct. Oc. Only statements II and III are correct. Od. Only statement III is correct. Oe. Only statement II is correct.
What is the maximum IRA contribution that Josh can make under each of the following assumptions? Required: a. Josh is age 20 and single. Josh's only income item is $13,600 interest from a trust fund. b. Josh is age 40 and single. Josh's only income item is a $34,600 share of ordinary income from a partnership. c. Josh is age 60 and single. Josh's only income item is $29,000 wages. d. Josh is age 46 and files a joint return with a spouse. Josh's sole proprietorship generates a $7,390 loss, and the spouse's salary is $49,800. a. Maximum contribution b. Maximum contribution c. Maximum contribution d. Maximum contribution Amount
Problem 11-62 (LO 11-5) Pablo and his wife Bernita are both age 58. Their combined AGI is $83,000. Neither is a participant in an employer-sponsored retirement plan. They have been contributing to a traditional IRA for many years and have built up an IRA balance of $100,000. They are considering rolling the traditional IRA into a Roth IRA. Required: a. Is the couple eligible to make the conversion? b. Assume that the couple does not make the conversion but, instead, establishes a separate Roth IRA in the current year and properly contributes $3,000 per year for four years, at which point the balance in the Roth is $21,000 (contributions plus investment earnings). At the end of four years, they withdraw $22,000 to pay for an addition to their house. What is the amount of withdrawal that is taxable, if any? c. Assume same facts as in requirement b, except that they instead withdrew only $6,000. What is the amount of withdrawal that is taxable? d. What if the $22,000 withdrawal is used to…
Determine the retirement savings contributions credit in each of the following independent cases. Use Table 9-2. a. A married couple filing jointly with modified AGI of $37,500 and an IRA contribution of $1,800. b. A married couple filing jointly with modified AGI of $58,000 and an IRA contribution of $1,900. c. A head of household taxpayer with modified AGI of $33,000 and Roth IRA contribution of $1,990. d. A single taxpayer with modified AGI of $12,000 and an IRA contribution of $2,800. Retirement Savings Contributions Credit
Problem 11-57 (LO 11-3) Under what circumstances is it advantageous for a taxpayer to make a nondeductible contribution to a traditional IRA rather than a contribution to a Roth IRA? a. b. Tax Payer Status X Answer is complete but not entirely correct. Married filing joint Single/Head of household $ $ Maximum AGI limit 103,000 $ 64,000 X $ Starting phase out limit 123,000 74,000 X

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