What is the penalty for excess contributions to an ira

Assignment Help Accounting Basics

Reference no: EM132665491

Problem 1: Tom's Tier II Railroad Retirement benefits are reported on Form RRB-1099-R. Tom's tax preparer must know all the following to calculate the taxable amount of Tier II Railroad Retirement benefits using the Simplified Method, except:

Select one:

a. The current age of the taxpayer

b. How much has been recovered tax-free since 1986

c. The age at which the taxpayer started drawing retirement

d. The number of payments received in the year

Problem 2: Hank has contributed more than the maximum allowable amount to his IRA. What is the penalty for excess contributions to an IRA?

Select one:

a. 6% on the excess amount in the year the excess is deposited

b. 6% per year on the excess amount for as long as the excess remains in the account

c. 6% per year on the account balance for as long as the excess remains in the account

d. 6% on the account balance in the year the excess is deposited

Reference no: EM132665491

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