Question

1) Victoria (42) is the sole proprietor of bakery. in 2018, she made SEP IRA contributions on behalf of herself and three employees. Her contributions were made in the following amounts: $9,000 in employer contributions for her employees. $2,500 in employer contributions to her own SEP IRA. How much will Victoria deduct on schedule 1 (Form 1040), line 28 (Self-employed SEP, SIMPLE, and qualified plans)?

A)$2,500 B)$5,500 C)$9,000 D)$11,500

2) Edna, a single taxpayer, has traditional IRAs with a value of $250,000 as of December 31, 2017. She will turn 70 and half on November 11, 2018, and will take her RMD by April, 2019. How much of a distribution should she take to meet the RMD?

A) $0, no distribution is required B)$9,124 C)$9,434 D)$10,000

3) Nonqualified distributions from a Roth IRA are made in specific order. Assuming there have been no excess contributions, which of the following irems is distributed LAST?

A) Regular contributions.

B) Earning on contributions.

C) The taxable portion of any conversions or rollover contributions.

D) The nontaxable portion of any conversions or rollover contributions.

4) Rick, retired single taxpayer, began receiving a monthly pension from his former employer's qualified plan in January 2018. He was 66 years old when he received the first payment, and the pension will pay over the course of his life. He received a Form 1099-R for the tax year showing a gross distribution of $8,00 in box 1, code 7 in box 7, and total employee contributions of $20,000 in box 9b. Box 2a is blank, and box 2b indicates that the taxable amount is not determined, How much of Rock's distribution is taxable ?

A) $0 B)$6,857 C)$8,000 D)$18,857

Answer 1

Answer 1) Option A ($2500, Victoria can claim only her contribution in her form 1040, maximum amount being $5500)

Answer 2) Option C ($9,434)

Answer 3) Option B (Earning on contributions)

Answer 4) Option A ($0)