CHAPTER 19--DEFERRED COMPEN

In 2010 grady corporation paid compensation of 46600

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55. In 2010, Grady Corporation paid compensation of $46,600 to the participants in a profit sharing plan. Grady contributed $13,100 to the plan. Grady’s deductible amount and any contribution carryover are as follows: A. $0 deductible; $13,100 carryover. B. $8,940 deductible; $4,160 carryover. C. $11,175 deductible; $1,925 carryover. D. $11,650 deductible; $1,450 carryover. E. None of the above. 56. Jermaine is a self-employed accountant with gross earned income of $130,000 for the tax year (after the deduction for one-half of any self-employment tax). He has a profit sharing plan (e.g., defined contribution plan). What is the maximum amount Jermaine can contribute to his retirement plan? 57. The compensation paid by Antawn Corporation to the plan participants of a profit sharing plan in 2010 was $41,200. During 2010, Antawn Corporation contributed $10,700 to the plan. Antawn’s deductible amount for 2010 is what amount, if any? 6
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58. A participant, who is age 38, in a cash or deferred arrangement plan [§ 401(k)] may contribute up to what amount in 2010? 59. Merrill is a participant in a SIMPLE § 401(k) plan, and he elects to contribute 4% of his $40,000 compensation to the account, while his employer contributes 3%. What amount will vest immediately, if any? A. $0. B. $1,200. C. $1,600. D. $2,800. E. None of the above. 60. Susan is a self-employed accountant with a qualified defined contribution plan (a Keogh plan). She has the following income items for the year: Earned income from self-employment $50,000 Dividend income 8,000 Interest income 2,000 Net short-term capital gain 12,000 Adjusted gross income 72,000 What is the maximum amount Susan can deduct as a contribution to her retirement plan in 2010, assuming the self-employment tax rate is 15.3%? 61. Joyce, age 39, and Sam, age 40, who have been married for seven years, are both active participants in qualified retirement plans. Their total AGI for 2010 is $120,000. Each is employed and earns a salary of $65,000. What are their combined deductible contributions to traditional IRAs? 62. Donna, age 27 and unmarried, is an active participant in a qualified retirement plan. Her AGI is $111,000. What amount, if any, may Donna contribute to a Roth IRA in 2010? 7
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63. Sammy, age 31, is unmarried and is not an active participant in a qualified retirement plan. His modified AGI is $55,000 in 2010. The maximum amount that Sammy can deduct for a contribution to a traditional IRA is: A. $2,800. B. $3,500. C. $4,000. D. $5,000. E. None of the above.
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  • Spring '12
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  • a. b. c., b. c. d., C. D. E.

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