Chapter 13 Retirement Savings and Deferred Compensation

| November 9, 2018

72.

Which of the
following statements concerning traditional IRAs and Roth IRAs is true?

A.

A taxpayer
may contribute to a Roth IRA at any age but a taxpayer is not allowed to
contribute to a traditional IRA after reaching 70½ years of age.

B.

The annual
contribution limits for a traditional IRA and Roth IRA are the same.

C.

Taxpayers
with high income are allowed to contribute to traditional IRAs but not to
Roth IRAs.

D.

All of
these are true statements.

73.

Which of the
following is not a self-employed retirement account?

A.

SEP IRA

B.

SEM 403(c)

C.

Individual
401(k)

D.

None of
these. All of these are self-employed retirement accounts.

74.

In general,
which of the following statements regarding self-employed retirement accounts
is true?

A.

SEP IRAs
have higher contribution limits than individual 401(k)s if the contributing
taxpayer is at least 50 years of age at year end.

B.

SEP IRAs
have higher contribution limits than individual 401(k)s no matter the age
of the contributing taxpayer.

C.

Individual
401(k)s have higher contribution limits than SEP IRAs.

D.

None of
these. Both SEP IRAs and individual 401(k)s have exactly the same annual
contribution limits.

75.

Which of the
following statements regarding self-employed retirement accounts is
true?

A.

A
self-employed taxpayer who has hired employees may not set up a SEP IRA.

B.

A
self-employed taxpayer who has hired employees may set up either a SEP IRA
or an individual 401(k).

C.

A
self-employed taxpayer who has hired employees may not set up an individual
401(k).

D.

All of
these statements are false.

76.

Which of the
following is true concerning SEP IRAs?

A.

SEP IRAs
are difficult to set up and have high administrative costs

B.

Taxpayers
may contribute unlimited amounts to SEP IRAs

C.

Employees
of the taxpayer cannot be included in SEP IRAs

D.

Taxpayers
with a SEP IRA must contribute for their employees

77.

Which of the
following statements concerning individual 401(k)s is false?

A.

In general,
individual 401(k)s have higher administrative costs than SEP IRAs.

B.

Employees
cannot participate in individual 401(k)s.

C.

Individual
401(k)s are available only to self-employed taxpayers with 100 or fewer
employees.

D.

Individual 401(k)s
have contribution limitations.

78.

Kathy is 60
years of age and self-employed. During 2014 she reported $100,000 of revenues
and $40,000 of expenses relating to her self-employment activities. If Kathy
has no other retirement accounts in her name, what is the maximum amount she
can contribute to a simplified employee pension (SEP) IRA for 2014?

A.

$11,152

B.

$16,652

C.

$57,500

D.

$52,000

79.

Kathy is 48
years of age and self-employed. During 2014 she reported $100,000 of revenues
and $40,000 of expenses relating to her self-employment activities. If Kathy
has no other retirement accounts in her name, what is the maximum amount she
can contribute to a simplified employee pension (SEP) IRA for 2014?

A.

$11,152

B.

$16,652

C.

$57,500

D.

$52,000

80.

Kathy is 60
years of age and self-employed. During the year she reported $400,000 of
revenues and $100,000 of expenses relating to her self-employment activities.
If Kathy has no other retirement accounts in her name, what is the maximum
amount she can contribute this year to a simplified employee pension (SEP)
IRA?

A.

$52,000

B.

$57,500

C.

$57,746

D.

$288,729

81.

Kathy is 60
years of age and self-employed. During the year she reported $100,000 of
revenues and $40,000 of expenses relating to her self-employment activities.
If Kathy has no other retirement accounts in her name, what is the maximum
amount she can contribute to an individual 401(k)?

A.

$28,652

B.

$34,152

C.

$52,000

D.

$57,500

Get a 20 % discount on an order above $ 40
Use the following coupon code:
LOBSTER
Positive SSL