Using the simplified method, determine the tax-free amount of the following distributions from a qualified pension plan. Individual contributions, if any, are made with previously taxed dollars. Use monthly payments table Required: a. Person A, age 66, made no contributions to the pension plan and will receive a $1,300 monthly check for life b. Person B, age 71, made contributions of $31,000 to the pension plan and will receive a monthly check of $2,900 for life Note: Round your answer to 2 decimal places. c. Person C, age 52, made contributions of $30,000 to the pension plan and will receive monthly payments of $2,500 over her life and the life of her 54-year-old husband Note: Round your answer to 2 decimal places. d. Person D, age 72, made contributions of $43,000 to the pension plan. He will receive quarterly payments of $5,500 over his life and the life of his 69-year-old wife. Note: Round your answer to 2 decimal places. Amount a. Tax free portion b. Tax free portion c. Tax free portion d. Tax free portion

Using the simplified method, determine the tax-free amount of the following distributions from a qualified pension plan. Individual contributions, if any, are made with previously taxed dollars. Use monthly payments table Required: a. Person A, age 66, made no contributions to the pension plan and will receive a $1,300 monthly check for life b. Person B, age 71, made contributions of $31,000 to the pension plan and will receive a monthly check of $2,900 for life Note: Round your answer to 2 decimal places. c. Person C, age 52, made contributions of $30,000 to the pension plan and will receive monthly payments of $2,500 over her life and the life of her 54-year-old husband Note: Round your answer to 2 decimal places. d. Person D, age 72, made contributions of $43,000 to the pension plan. He will receive quarterly payments of $5,500 over his life and the life of his 69-year-old wife. Note: Round your answer to 2 decimal places. Amount a. Tax free portion b. Tax free portion c. Tax free portion d. Tax free portion

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter5: Deductions For And From Agi

Section: Chapter Questions

Problem 12MCQ

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Using the simplified method, determine the tax-free amount of the following distributions from a qualified pension plan. Individual contributions, if any, are made with previously taxed dollars. Use monthly payments table. Required: a. Person A, age 53, made no contributions to the pension plan and will receive a $700 monthly check for life. b. Person B, age 58, made contributions of $25,000 to the pension plan and will receive a monthly check of $1,700 for life. Note: Round your answer to 2 decimal places. c. Person C, age 63, made contributions of $18,000 to the pension plan and will receive monthly payments of $1,300 over her life and the life of her 66-year-old husband. Note: Round your answer to 2 decimal places. d. Person D, age 58, made contributions of $31,000 to the pension plan. He will receive quarterly payments of $4,300 over his life and the life of his 60-year-old wife. Note: Round your answer to 2 decimal places. a. Tax free portion b. Tax free portion c. Tax free…
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