What is the maximum amount that karen may deduct

Reference no: EM132202063

Question -

Q1. Rollovers Telly, age 38, has a $140,000 IRA with Blue Mutual Fund. He has read good things about the management of Green Mutual Fund, so he opens a Green Fund IRA. Telly asked for and received his balance from the Blue Fund on May 1, 2017.

a. What is the total amount Telly will receive from the Blue Fund IRA?

b. What amount must Telly contribute to the Green Fund IRA to avoid having taxable income and penalties for early withdrawal?

c. When is the last day Telly can roll over the amount received into the Green Fund IRA and avoid taxation in the current year, assuming no unusual circumstances? (May 30, 2017; June 30, 2017; OR August 2017)

d. What amount will Telly initially receive if the distribution were from his employer's qualified retirement plan?

Q2. Karen, 28 years old and a single taxpayer, has a salary of $30,000 and rental income of $33,000 for the 2017 calendar tax year. Karen is covered by a pension through her employer.

a. What is the maximum amount that Karen may deduct for contributions to her traditional IRA for 2017?

b. If Karen is a calendar year taxpayer and files her tax return on August 15, what is the last date on which she can make her contribution to the IRA and deduct it for 2017?

Reference no: EM132202063

Questions Cloud

Calculate the expected return on the US stock : Calculate the expected return on the U.S. stock from the Danish investor's viewpoint, that is, in Danish krone. Please briefly explain your answer

Calculate the labor participation rate with the data : Calculate the labor participation rate with the data given above. Round the percent to the nearest tenth.

Find the sum og series : Find the sum og series 1+(1+3)+(1+3+5)+.......+(1+3+...+15+17)

How would marias optimal plan change : Maria had received a huge number of parking tickets over a 15-year period but didn't bother to pay any of them. How would Marias optimal plan change

What is the maximum amount that karen may deduct : Karen, 28 years old and a single taxpayer, has a salary of $30,000, What is the maximum amount that Karen may deduct

Critically evaluate e-commerce business models : CIS8100 E-commerce Business Strategy Report - critically evaluate e-commerce business models to gain an understanding of their business application

Discuss briefly the assertion that investment by a company : AN INTRODUCTION TO SAFETY ENGINEERING - Discuss briefly the assertion that investment by a company in safety procedures and training reduces

What are the three legal forms of business organization : What are the three legal forms of business organization? which form of organization is dominant in the terms of total profits and why?

In which program do you feel you are strongest : In which program do you feel you are strongest? What do you think you could do to bolster your strength in the other programs?

User Account

All Pages