How much of bill social security benefit will be subject

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Problem 1: Bill is single, retired, and received Social Security retirement benefits of $28,000 this year. His other income consists of his monthly $5,000 pension payment from his prior employer; $5,000 in tax-exempt municipal bond interest; and $1,000 in dividends. How much of Bill's Social Security Benefit will be subject to income tax?

Option 1: $0.
Option 2: $14,000.
Option 3: $23,800.
Option 4: $28,000.

Problem 2: Non-qualified deferred compensation plans often use life insurance for funding within the plan. Why is this?

Option 1: Life insurance investment products typically have higher returns.
Option 2: Life insurance products have tax advantages.
Option 3: Life insurance is provides an additional layer of avoidance for constructive receipt.
Option 4: Life insurance limits the liability of the company sponsor for the NQDC plan.

Reference no: EM132729157

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