90.2K

Verified Solution

Link Copied!

If you transfer your 401(k) which contains your own company stock (among other assets) purchased with your own payroll deductions to an IRA, which of the following strategies results in the lowest immediate tax liability?

Question 7 1 pts According to the author, one of the 'optimal times to convert from a Traditional IRA to a Roth IRA is O after one has taken 10 years of RMDs. the window of time between retirement and when RMDs will begin. never. O after one has taken 12 years of RMDs. Question 8 1 pts Tom and Tim each have $300,000 in a traditional IRA and $90,000 in cash. If Tom converts his IRA to a Roth IRA and pays the $90,000 cash in taxes owed, which of the following is true (after the conversion)? Tom has $90,000 less in after-tax spending power. O Tom and Tim have identical after-tax spending power. Tim has $90,000 more in after-tax spending power. Question 11 1 pts Annuitizing one's assets means O exchanging the assets up front for a set of payments to be received in the future. paying some of your assets every month into a fund that will not pay you back in your lifetime. O investing in a security with unknown returns or payment schedules. Question 13 1 pts Which of the following are possible payment schedules for an annuity? (mark all that apply). Remainder of your and your spouse's life Fixed number of years. Remainder of your life Question 14 1 pts True or False? It is possible to structure the payout of an annuity in such a way that if you die the day after beginning the annuity payout phase, you (or your heirs) may receive no future payments. (in other words, you lose). O True O False Question 15 1 pts Under which circumstance might it be unwise to fund an annuity that has no guarantees? You and your spouse are both in excellent health. You have a short life expectancy. O You have a very long life expectancy. > Question 16 1 pts One of the benefits of an annuity is that it O has low rates of return. O may remove the risk of your outliving your retirement income. O includes RMDs. O has typically high fees. Question 17 1 pts NUA refers to O the difference between the purchase price and the current price of your own company stock held in a company retirement account. O A stock held in an IRA. O Net Undervalued Asset(s). O A gain in a stock held in an IRA. Question 18 1 pts Under which circumstance might there be no NUA? Your company stock in your 401(k) account tripled in value. O You do not hold your own company stock in a company retirement account. Your purchase price of your own company stock in your 401(k) is less than its current market value. You work for Microsoft and purchased Microsoft stock in your 401(k) account. Question 19 1 pts NUA are not taxed under which circumstances (assuming a transfer of assets to an IRA): The stock in the retirement plan was purchased with employee payroll deductions. The stock is sold after transferring to the IRA. O The stock is transferred directly to the IRA. Question 20 1 pts If you transfer your 401(k) which contains your own company stock (among other assets) purchased with your own payroll deductions to an IRA, which of the following strategies results in the lowest immediate tax liability? O Withdraw everything as a taxable withdrawal. Transfer the stock to a brokerage account and the other assets to the IRA. Transfer everything including the stock to the IRA. Question 7 1 pts According to the author, one of the 'optimal times to convert from a Traditional IRA to a Roth IRA is O after one has taken 10 years of RMDs. the window of time between retirement and when RMDs will begin. never. O after one has taken 12 years of RMDs. Question 8 1 pts Tom and Tim each have $300,000 in a traditional IRA and $90,000 in cash. If Tom converts his IRA to a Roth IRA and pays the $90,000 cash in taxes owed, which of the following is true (after the conversion)? Tom has $90,000 less in after-tax spending power. O Tom and Tim have identical after-tax spending power. Tim has $90,000 more in after-tax spending power. Question 11 1 pts Annuitizing one's assets means O exchanging the assets up front for a set of payments to be received in the future. paying some of your assets every month into a fund that will not pay you back in your lifetime. O investing in a security with unknown returns or payment schedules. Question 13 1 pts Which of the following are possible payment schedules for an annuity? (mark all that apply). Remainder of your and your spouse's life Fixed number of years. Remainder of your life Question 14 1 pts True or False? It is possible to structure the payout of an annuity in such a way that if you die the day after beginning the annuity payout phase, you (or your heirs) may receive no future payments. (in other words, you lose). O True O False Question 15 1 pts Under which circumstance might it be unwise to fund an annuity that has no guarantees? You and your spouse are both in excellent health. You have a short life expectancy. O You have a very long life expectancy. > Question 16 1 pts One of the benefits of an annuity is that it O has low rates of return. O may remove the risk of your outliving your retirement income. O includes RMDs. O has typically high fees. Question 17 1 pts NUA refers to O the difference between the purchase price and the current price of your own company stock held in a company retirement account. O A stock held in an IRA. O Net Undervalued Asset(s). O A gain in a stock held in an IRA. Question 18 1 pts Under which circumstance might there be no NUA? Your company stock in your 401(k) account tripled in value. O You do not hold your own company stock in a company retirement account. Your purchase price of your own company stock in your 401(k) is less than its current market value. You work for Microsoft and purchased Microsoft stock in your 401(k) account. Question 19 1 pts NUA are not taxed under which circumstances (assuming a transfer of assets to an IRA): The stock in the retirement plan was purchased with employee payroll deductions. The stock is sold after transferring to the IRA. O The stock is transferred directly to the IRA. Question 20 1 pts If you transfer your 401(k) which contains your own company stock (among other assets) purchased with your own payroll deductions to an IRA, which of the following strategies results in the lowest immediate tax liability? O Withdraw everything as a taxable withdrawal. Transfer the stock to a brokerage account and the other assets to the IRA. Transfer everything including the stock to the IRA

Answer & Explanation Solved by verified expert

See Answer