50.1K

Verified Solution

Link Copied!

4. Michael is single and 35 years old. He is a participant in his employers sponsored retirement plan. How much can Michael contribute to a Roth IRA in each of the following alternative situations? (Leave no answer blank. Enter zero if applicable.)

a. Michaels AGI is $50,000 after he contributed $3,000 to a traditional IRA.

Contribution to Roth IRA: ?

5. In 2017, Rashaun (62 years old) retired and planned on immediately receiving distributions (making withdrawals) from his traditional IRA account. The balance of his IRA account is $160,000 (before reducing it for withdrawals/distributions described below). Over the years, Rashaun has contributed $40,000 to the IRA. Of his $40,000 contributions, $30,000 was nondeductible and $10,000 was deductible. Assume Rashaun did not make any contributions to the account during 2017.

a. If Rashaun currently withdraws $20,000 from the IRA, how much tax will he be required to pay on the withdrawal if his marginal tax rate is 25 percent?

	Amount of Withdrawal ? Ratio of nondeductible contributions: ? ? ? ? 0 % Non-taxable $0 Taxable ? Tax Rate ? % Tax $0

10. Alicia has been working for JMM Corp. for 32 years. Alicia participates in JMMs defined benefit plan. Under the plan, for every year of service for JMM she is to receive 2 percent of the average salary of her three highest years of compensation from JMM. She retired on January 1, 2017. Before retirement, her annual salary was $570,000, $600,000, and $630,000 for 2014, 2015, and 2016. What is the maximum benefit Alicia can receive in 2017?

Maximum benefit in 2017: ?

Answer & Explanation Solved by verified expert

See Answer