101) Tyler (age 50) and Connie (age 48) are a married couple. Tyler is covered under a qualified retirement plan at his job and earned $175,000 in 2013. Connie is employed as a lab technician and earned $30,000 but is not covered under a qualified retirement plan. They file a joint return; have interest and dividend income of $30,000. What is their maximum for AGI deduction for contributions to a traditional IRA?
102) Tucker (age 52) and Elizabeth (age 48) are a married couple. Tucker is covered under a qualified retirement plan at his job and earned $90,000 in 2013. Elizabeth is employed as a lab technician and earned $30,000 but is not covered under a qualified retirement plan. They file a joint return; have interest and dividend income of $25,000. What is the maximum amount of tax deductible contributions may be made to a traditional IRA?
103) During 2013, Marcia, who is single and is covered under a pension plan at work, contributes $5,500 into a Roth IRA. If her AGI is $63,000, which of the following is true?
A) All of the contribution is deductible.
B) None of the contribution is deductible.
C) She must withdraw all of the contribution immediately since she is covered under a plan at work.
D) Only 60% of the contribution is deductible since her AGI exceeds $59,000 by $4,000 and her maximum contribution is phased out by 40%.
104) Feng, a single 40 year old lawyer, is covered by a qualified retirement at work. His salary is $109,000, and his total AGI is $121,000. The maximum contribution he can make to a Roth IRA is
105) Which of the following is true about future qualified distributions from a Roth IRA by a person who will be 65 years old at the time the distributions begin? Assume the individual opened the account before age 60.
A) The entire amount of the distributions will be tax-free.
B) Only the accumulated earnings will be tax-free.
C) Only the previous contributions will be tax-free.
D) The entire amount of the distribution will be taxable.
106) All of the following are true with regard to a Roth IRA except
A) contributions to Roth IRAs are subject to special modified AGI limitations that are higher than those for traditional IRAs.
B) contributions to Roth IRAs are never tax deductible.
C) contributions to Roth IRAs must cease after the owner has reached age 70 1/2.
D) contributions to existing Roth IRAs must be made by the due date of the return.
107) Which of the following statements regarding Coverdell Education Savings Accounts is incorrect, disregarding any AGI limits?
A) Distributions cannot be used for elementary and secondary education expenses.
B) Distributions to the beneficiary are not taxable as long as they are used for tuition, fees, room and board.
C) Contributions can be made until the beneficiary reaches 18.
D) Contributors can make nondeductible contributions of up to $2,000 for each beneficiary.
108) Which of the following statements regarding Health Savings Accounts is incorrect?
A) Taxpayers are allowed to deduct contributions to a health savings account for AGI.
B) All taxpayers are eligible to establish a health savings account.
C) Distributions from a health savings account are excluded from gross income if used to pay qualified medical expenses.
D) Health savings account contributions are limited to the lesser of 100% of annual deductible under high deductible health plan or $3,250 for taxpayers without family coverage.