CHAPTER 19--DEFERRED COMPEN

Joyce age 39 and sam age 40 who have been married for

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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? A. $0. B. $3,000. C. $4,000. D. $8,000. E. None of the above. 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: 64. Xijia establishes a Roth IRA at age 34 and contributes the maximum amount per year to the Roth IRA for 32 years. The account is now worth $282,000, consisting of $128,000 in contributions plus $154,000 in accumulated earnings. How much can Xijia withdraw tax free in 2010? 65. Dirk has $228,000 of earned income in 2010. The amount he can contribute to a SEP is: A. $22,800. B. $46,000. C. $49,000. D. $61,250. E. None of the above. 66. Julie receives a $2,000 distribution from a CESA. On this date, the total balance is $10,000, with $4,000 representing earnings. If her qualified higher education expenses are $2,350, what amount can she exclude from gross income? 67. Harry receives a $10,000 distribution from a CESA. On this date, his total account balance is $16,000, with $4,000 representing earnings. If his qualified higher education expenses are $8,000, the amount included in gross income is: 68. What is the maximum amount Velvia can contribute to a Coverdell Education Savings Account (CESA) on behalf of a grandson in 2010? She is single with an AGI of $99,000. 8
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69. Melissa, age 40, establishes a traditional IRA in 2010 and contributes $5,650 in cash to the plan. She has earned income of $36,200. What is the amount of the penalty tax that Melissa will incur, if any, assuming she keeps the $5,650 in the account? A. $0. B. $39. C. $65. D. $650. E. None of the above. 70. Arlene, an executive, receives a golden parachute payment of $600,000 from her employer. Her average annual compensation for the past five tax years is $130,000. Which of the following statements is correct?
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  • Spring '12
  • honig
  • a. b. c., b. c. d., C. D. E.

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