Melanie Grover is earning a 37000 salary this year and is a participant in a

Melanie grover is earning a 37000 salary this year

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Melanie Grover is earning a $37,000 salary this year and is a participant in a qualified corporate pension 67. plan. She is also receiving $10,000 in book royalties from horror novels she has written. If Melanie wishes to make deductible contributions to a new H.R. 10 (Keogh) plan, when must the a. plan be established? When must the plan contribution be made at the latest? b. How much may Melanie deduct if she established a money purchase pension plan? c. How much may be deducted if the plan is a profit-sharing vehicle? d. May Melanie borrow from the plan? e.
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640 CCH Federal Taxation—Basic Principles Chapter 14 © 2010 CCH. All Rights Reserved. Fritz Burnett participates in his employer’s profit-sharing plan and would like to borrow the maximum 68. amount possible from his account balance. How much can he borrow currently in the following, independent cases? He is vested in the amount of $7,000. a. He is vested in the amount of $70,000. b. He is vested in the amount of $150,000. c. He is vested in the amount of $200,000, but he borrowed $100,000 three years ago and 12 months ago d. his loan balance was $37,000. Steve Colburn earned $75,000 in his sole proprietorship. What is the maximum contribution that Steve can 69. make to his defined contribution Keogh plan? 70. on their joint return was $21,000, and only Mr. Smith was a participant in a qualified retirement plan. How much may each contribute to an IRA account and deduct from taxable income? 71. accounts. Judy works as a college professor and earns $90,000 in 2010. Steve earns $50,000 and is not covered by a retirement plan. Judy is covered by a qualified plan at work. What is the maximum deductible amount each may contribute to an IRA in 2010? 72. plan, what is the minimum number of employees that must benefit? 73. He turned 70 ½ on February 1, 2010. He retired on February 28, 2010. By what date must he begin drawing on his pension?
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