Quiz 1 Flashcards
Isolating knowledge from quiz 1
Can isos be deductible to the issuing corporation?
Yes
When does vesting happen in simple and safe harbor plans?
Immediately, 100%
What is the law for simple and safe harbor 401K plans regarding ADP and ACP tests?
Simple and safe harbor 401ks require contributions at a level that is deemed to satisfy the non-discrimination requirement
What’s one effective strategy to reduce generation skipping transfer tax?
A reverse q-tip
What is the latest someone working past 72 in a company with a qualified plan can take his rmd?
April 1st following the year he retires
Was it important on question seven whether the client went from his or her own account?
Yes
Are loans permitted from a TSA?
Yes
Could the exam feel that convertible bonds provide a reasonable level of income with some long term growth?
Yes
Can a CPA make casual investment suggestions without registering?
Yes, according to quiz
If trust income is accumulated in a trust but not stated that it is going to the grantor but is stated that is going for later distribution is that taxable to the grantor?
No
What’s the deduction limit for gifts of long-term capital gain property?
30% of AGI
Are workers comp benefits tax-free?
Yes
Do workers comp benefits include disability income?
Yes
What does a Quadro relate to?
Child support, alimony payment, and marital property rights
What is phase out for spousal ira deductibility?
$196,000
If spouse is uncovered or non-active participant in plan but other spouse is, can first spouse contribute and deduct?
Yes
Exam thought question: cannot addressing products be considered negligent?
Yes
Four ways to reduce AMT payable
- Exercise non-qualified stock options
- Take short-term capital gains
- Delay till next year payment of a property tax bill
- Exercise and sell an ISO in the year of exercise
Does allowing an intern to present a plan to clients without supervision violate duty of professionalism?
Yes, definitely
Limits 25% self-employment tax
137,700 and 0. 1859
Self-employment limit numbers
Age 21 three or five years less than 600
Integration with SS #
137,700
Hce
$139k or 5% owner
Qualified plan loan can be tax free if
Under 50 & 5 and all payments made
Spousal thresholds IRAs
65 to 75 k single, 104 to 124k married
What’s the deal on rate of return for a cash Bal plan (qualified)m?
Minimum rate
