Question

Please answer all of these

2. Colin is 35 years old and inherits an IRA from his mother, who dies prematurely at age 60 in May 2020. Which of the following statements is correct regarding his options for the inherited IRA?

a. Colin does not have to take distributions until he turns 70 years old

b. Colin can rollover the IRA into his own IRA

c. Colin can take out the entire distribution any time within 10 years and avoid all penalties

d. Colin can take distributions over his single life expectancy

3. At what age, is someone able to access the funds in their IRA under a normal distribution retirement scenario?

a. 55

b. 70 1/2

c. 62

d. 59 1/2

4. What is the percentage of penalty an investor pays if they take a withdrawal from their IRA prior to their normal distribution retirement age, not taking into consideration any exceptions?

a. 20%

b. 50%

c. 15%

d. 10%

Answer #1

2. c. Collin can take out the entire distribution any time within 10 years and avoid all penalities

( In inherited IRA, non-spouse benificiaries must cash out the account within 10 years of the original owner's death)

3. d. 59 1/2

(In normal IRA distributions, a person can take out fund from IRA account after he/she reaches the age of 59 1/2 and no penality will be imposed)

4. d. 10%

(In normal distribution scenario ,if you withdraw fund before you reach age 59 1/2 , 10% will be assessed as early withdrawal penalty tax)

Colin is 40 years old and wants to retire in 27 years. His
family has a history of living well into their 90s. Therefore, he
estimates that he will live to age 95. He currently has a salary of
$150,000 and expects that he will need about 85% of that amount
annually at the beginning of each year if he were retired. He can
earn 8.5% from his portfolio and expects inflation to continue at
3%. Some years ago, he...

Jamie is 42 years old and received a $20,000 distribution from
his Roth IRA, established in 2009. At the time of the distribution
the Roth IRA account totaled $33,748: $18,000 regular
contributions, $10,000 taxable conversion contributions made in
2014, and $5,748 earnings. How much of his distribution is taxable
and subject to the early distribution penalty:

Jamie is 42 years old and received a $20,000 distribution from
his Roth IRA, established in 2010. At the time of the distribution,
the Roth IRA account totaled $33,748: $18,000 regular commissions,
$10,000 taxable conversion contributions made in 2015, and $5,748
earnings. How much of the distribution is taxable and subject to
the early distribution penalty?
a) $0 taxable; $0 penalized
b) $0 taxable; $2,000 penalized
c) $0 taxable; $20,000 penalized
d) $2,000 taxable; $2,000 penalized

In 2019, 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 2019. (Do not round
intermediate calculations. Round your final answers to the nearest...

Solve the following scenario below:
+ Quentin attained age 70 1/2 on August 7, this year.
+ The balance in Quentin's mutual fund IRA on December 31, last
year,is $45,000.
+ The balance in Quentin's bank IRA on December 31, last year,is
$20,000.
+ Quentin wants to take a distribution from his IRA to satisfy
the minimum distribution requirement.
+ Elizabeth, his wife, is age 65 and is the beneficiary on both
of Quentin's IRAs.
Which of the following are...

Question 1 (1 point)
Ray died this year at age 73, and his wife, Mary, age 55, is the
designated beneficiary on his Roth IRA. Ray's Roth IRA was
established 3 years ago. Which of the following statements is(are)
CORRECT?
I Ray was not subject to required minimum distributions from his
Roth IRA during his lifetime.
II If Mary chooses to distribute the entire balance of the Roth IRA
this year, the distribution may be subject to both regular income...

The average retirement age in America is 64 years old. Do small
business owners retire at a younger average age? The data below
shows the results of a survey of small business owners who have
recently retired. Assume that the distribution of the population is
normal.
69, 53, 50, 58, 69, 68, 68, 51, 70, 67, 60, 55, 63, 56, 53,
69
What can be concluded at the the αα = 0.10 level of significance
level of significance?
For this...

Background
When Sheryl graduated from Northeastern University in 2000 and
went to work for BAE Systems, she did not pay much attention to the
monthly payroll deduction for social security. It was a “necessary
evil” that may be helpful in retirement years. However, this was so
far in the future that she fully expected this government
retirement benefit system to be broke and gone by the time she
could reap any benefits from her years of contributions. This year,
Sheryl...

Background
When Sheryl graduated from Northeastern University in 2000 and
went to work for BAE Systems, she did not pay much attention to the
monthly payroll deduction for social security. It was a “necessary
evil” that may be helpful in retirement years. However, this was so
far in the future that she fully expected this government
retirement benefit system to be broke and gone by the time she
could reap any benefits from her years of contributions.
This year, Sheryl...

Sally is 92 years old and single and claimed by her daughter as
a dependent. During the tax year she received $1,900 in interest
from her savings account, $1,500 in interest from State of New York
general obligation bonds, and $8,000 distributions from a Roth IRA.
What is her AGI?
$1,500
$1,900
$3,400
$11,400
2) Cranky, age 70, is single and an employee of Unknown
Corporation. Her only sources of income in 2017 $80,000 of W-2
wages, $5,100 in alimony...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 4 minutes ago

asked 23 minutes ago

asked 29 minutes ago

asked 36 minutes ago

asked 58 minutes ago

asked 58 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago