1. Wendy is a sole proprietor with one employee. She maintains aSimple IRA in which she matches salary reduction contributions atthe rate of 3% of the employee's compensation. Where on her taxreturn does she report her own contribution, and where does shereport the contribution she makes on behalf of her employee?
a. Wendy's own salary reduction contribution and employermatches are reported on schedule C because she has an employee
b. Wendyâs own salary reduction contribution and her ownemployer match are reported on Form 1040; the matching contributionshe makes on behalf of herself and employee, as well as theemployeeâs elective deferrals, and all reported on Schedule C.
c. Wendyâs own salary reduction contribution and her ownemployer match are both reported on Form 1040: the matchingcontribution she makes to her employeeâs SIMPLE is reported onSchedule C.
d. Wendyâs own salary reduction contribution is reported on Form1040; the matching contributions for herself and on behalf of heremployee are both reported on Schedule C.
2. Leo, is 34 years old. He contributed 3,000 to a Roth IRS in2012 and 2,000 in 2013. In 2015 he withdrew the entire 5,466balance. How much of Leoâs withdrawal is taxable and subject topenalty?
a. Zero table and $466 subject to penalty
b. 466 taxable and 466 subject to penalty
c. 5,466 taxable and 466 subject to penalty
d. Zero taxable and 5,466 subject to penalty
3. At age 55, Lisa was separated from service. She rolled over19,000, the entire balance of her 401(k), into an IRA. ThenDecember of the same year, Lisa had to take 2150 out of this newIRA in order to pay her bills. How much of distributions aresubject to the early distribution penalty?
a. zero
b. 1900
c. 2150
d. 19000
4. A trustee-to-trustee rollover is the preferred way totransfer one retirement account to another. All of these arepotential problems when taxpayers take the distribution and handlethe rollover themselves:
a. The taxpayer must complete the entire rollover process with 60days or the distribution and will be taxable
b. The taxpayer is subject to a penalty if they try to do arollover from the same IRA more than once per year.
c. The distribution is subject to 20% withholding, and thetaxpayer must come up with the amount themselves or it will betaxable
d. The taxpayer cannot claim an expectation to the 10%penalty
1. Wendy is a sole proprietor with one employee. She maintains aSimple IRA in which she matches salary reduction contributions atthe rate of 3% of the employee's compensation. Where on her taxreturn does she report her own contribution, and where does shereport the contribution she makes on behalf of her employee?
a. Wendy's own salary reduction contribution and employermatches are reported on schedule C because she has an employee
b. Wendyâs own salary reduction contribution and her ownemployer match are reported on Form 1040; the matching contributionshe makes on behalf of herself and employee, as well as theemployeeâs elective deferrals, and all reported on Schedule C.
c. Wendyâs own salary reduction contribution and her ownemployer match are both reported on Form 1040: the matchingcontribution she makes to her employeeâs SIMPLE is reported onSchedule C.
d. Wendyâs own salary reduction contribution is reported on Form1040; the matching contributions for herself and on behalf of heremployee are both reported on Schedule C.
2. Leo, is 34 years old. He contributed 3,000 to a Roth IRS in2012 and 2,000 in 2013. In 2015 he withdrew the entire 5,466balance. How much of Leoâs withdrawal is taxable and subject topenalty?
a. Zero table and $466 subject to penalty
b. 466 taxable and 466 subject to penalty
c. 5,466 taxable and 466 subject to penalty
d. Zero taxable and 5,466 subject to penalty
3. At age 55, Lisa was separated from service. She rolled over19,000, the entire balance of her 401(k), into an IRA. ThenDecember of the same year, Lisa had to take 2150 out of this newIRA in order to pay her bills. How much of distributions aresubject to the early distribution penalty?
a. zero
b. 1900
c. 2150
d. 19000
4. A trustee-to-trustee rollover is the preferred way totransfer one retirement account to another. All of these arepotential problems when taxpayers take the distribution and handlethe rollover themselves:
a. The taxpayer must complete the entire rollover process with 60days or the distribution and will be taxable
b. The taxpayer is subject to a penalty if they try to do arollover from the same IRA more than once per year.
c. The distribution is subject to 20% withholding, and thetaxpayer must come up with the amount themselves or it will betaxable
d. The taxpayer cannot claim an expectation to the 10%penalty
