Retirement

Question 1

Self Employment tax based on what % of income?

Answer 1

92.35%

Question 2

Self Employment Social Security is how much?

Answer 2

12.4% up to 92.35% of pay up to $168.6k

Question 3

Self Employment Medicare is now much?

Answer 3

2.9% up to 92.35% of pay plus 0.9% on anything over $200k

Question 4

401k catch up and age

Answer 4

$7,500 for 50+

Question 5

403b catch up and age

Answer 5

$7,500 for 50+
$3,000 for 50+ and 15 years of service

Question 6

457 catch up and age

Answer 6

$7,500 for 50+
$46,000 total ctrbs in L3Y

Question 7

Simple IRA limits

Answer 7

$16k deferrals
$3.5k 50+

Question 8

Maximum deductible for a company?

Answer 8

25% of pay

Question 9

Maximum contribution deductible for an owner?

Answer 9

Contribution rate for all = x%
Max for owner: x% / (1+x%) X .9235

Question 10

Which plans can do what % of stock?

Answer 10

PS/401k : 100%
Target and MP: 10%

Question 11

Max comp that can be used

Answer 11

$345k

Question 12

Max benefit allowed

Answer 12

$275k

Question 13

Minimum vesting allowed in DC plans

Answer 13

2-6 graded, 3 year cliff

Question 14

Minimum vesting allowed in DB plans

Answer 14

DB plans: 3-7 graded, 5 year cliff
CB plans require 3 year cliff mim

Question 15

SEP and Simple Limits

Answer 15

SEP 25% of pay or $69k
Simple $16k + $3.5k catch up

Question 16

How much of an IRA deduction is phased out?

Answer 16

($ over the min) / (spread of phase out)

Question 17

Can you contribute to an IRA if neither you nor your spouse is covered by a plan?

Answer 17

Yes, both of you, no income limits.

Question 18

Can you contribute to an IRA if you are covered by a plan?

Answer 18

Yes if your income is within the limits ($77-87k; $123-143k). Your spouse can too.

Question 19

Can you contribute to an IRA if you are not covered by your spouse is?

Answer 19

Yes if your income is within the limits ($230-240k).

Question 20

Early IRA withdrawal penalty?

Answer 20

Direct rollover no penalty, no tax
Not direct? 20% tax and 10% penalty on the distribution

Question 21

Inherited IRA: years to distribute

Answer 21

Spouse can defer until 73 or add to own IRA
Eligible beneficiaries: their lifetimes
Non-Spouse beneficiary: 10 years
Non-Designated benes: 5 years

Question 22

what is the definition of Eligible beneficiaries for social security?

Answer 22

Spouse, chronically ill or disabled, kids<21, those <=10 years younger than dead guy

Question 23

Non-Spouse beneficiaries

Answer 23

Kids, others more than 10 years older than dead guy

Question 24

When can you take $ from a Roth?

Answer 24

After 5 years AND either
59.5, dead, disabled, 1st time homebuyer

Question 25

Non-qualified Roth IRA distribution rules?

Answer 25

If taken out too soon, earnings are taxed and they get a 10% penalty. No tax or penalty on contributions

Question 26

SERP?

Answer 26

Pays comp of a specified amount and period as long as years of service are reached

Question 27

can you fund a non-qualified plan?

Answer 27

Only a rabbi trust - it’s not shielded from corporate creditors

Question 28

Non Qualified Stock Options taxation

Answer 28

Ordinary income when you exercise, Cap gains when you sell

Question 29

Incentive Stock Options taxation

Answer 29

Only on sale
Cap gains if sold 1+ year from exercise and 2+ years from grant: (Sale - Grant)
Ordinary income if not (Exercise - Grant)

Question 30

How many years for the AIME calculation?

Answer 30

35 best years, include $0 for those years not working. All your income is added up.

Question 31

Social security discounts?

Answer 31

20% for 64-67 (5/9%)
10% more for 62-64 (5/12%)
24% premium for 67-70 (2/3%)

Question 32

Working and taking SS? Discounts are:

Answer 32

Half of your SS is taken if between $22k-$59k
33% is taken if over $59k

Question 33

Provisional income (your income for SS taxation purposes) =

Answer 33

AGI + 50% SS + tax exempt

Question 34

Spousal SS Rules

Answer 34

Can take at 62 if worker is taking SS
You get max of 50% worker’s PIA or your own
If worker takes early SS, spouse gets 8.33% discount on the PIA (<50%) per year
Must be married for 1+ year

Question 35

Ex Spouse SS Rules

Answer 35

Not subject to family limit
Can take at 62 even if spouse is not taking SS
Must be married for 10+ years, unmarried, have been divorced for 2+ years.

Question 36

Medicare - IRMAA. what is the income formula?

Answer 36

AGI + tax exempt income

Question 37

Social Security - kid rules

Answer 37

<18, disabled adult <22. Worker must be receiving benefits. Max benefit 50% of PIA.

Question 38

Net Unrealized Appreciation

Answer 38

For ER stock only and you take 100% lump sum. ER basis is taxed @ ord inc. Your distribution is taxed at cap gains. When you sell it’s taxed based on holding period from distribution date.