Question

1) Martha (53) works part-time, in addition, she is taking classes at the local university. This year, Martha was enrolled in seven hours for one semester and three for another.The university considers 12 credit hours to be full time. Martha deferred $4000 of compensation through her employer's 401(k) plan. Her AGI for 2018 was $30,500. How much is Martha's Saver's Credit, assuming no tax liability limit applies?

A) $0 B) $400 C)$800 D)$2,000

2) Jack and Kendra are married and file a joint return. The couple has a modified AGI of $59,000. Jack contributed $2,000 to his traditional IRA for the tax year. Neither Jack nor Kendra have ever taken a distribution from a retirement plan. Assuming there is no limitation based on their tax liability, what is the amount of their Saver's Credit?

A) $0 B) $200 C) $400 D) $1,000

3) in 2018, Elysia (38) contributed $2,000 to a traditional IRA. She is single, and her modified adjusted gross income(MAGI) is $30,000, all from wages. Elysia has never taken a distribution from any retirement account. She is potentially eligible for a retirement savings contribution credit(Saver's credit) of up to---------

A) $) B)$200 C)$400 D)$1,000

4) Victoria (42) is the sole proprietor of a bakery. in 2018, she made SEP IRA contributions on behalf of herself and three employees. Her contributions were made in the following amounts: $9,000 in employer contributions for her employees.$2,000 in employer contributions to her own SEP IRA. How much Victoria deduct on Schedule 1 (Form 1040), line 28(Self-employed SEP, Simple, and qualified plans)?

A) $2,500 B)$5,500 C) $9,000 D) $11,500

Answer 1

1) As head of household, Martha can claim $ 400 (20% of $ 2000) as saver's credit. The answer is B. if she is married and the married couple filing jointly, then the married couple can claim $ 2000 (50% of $ 4000). The answer is D for married couple filing jointly.

2) Married filing jointly can claim 10% of contribution of $ 2000 at $ 59000 AGI. Hence they can claim $ 200 as saver's credit. The answer is B.

3) Elysia is eligible for saver's credit of $ 400 (20% of $ 2000) as head of household. Answer is C.

I do not know the answer of 4).